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The Ultimate Guide to Buying Property in Kensington
Kensington stands as a vibrant and affluent neighbourhood, long favoured by young professionals, celebrities, and wealthy families seeking the epitome of luxury living in Prime Central London.
This comprehensive guide delves into the area’s property market, exploring pricing trends, rental yields, and the exclusive amenities that make Kensington a coveted residential destination.
At Clifton Private Finance, our expertise lies in guiding clients through Kensington’s exclusive property market. Leverage our tailored services and industry insights to unlock the full potential of Kensington’s property opportunities – whether you’re a UK buyer, or an international buyer.
Table of Contents
Kensington Property Prices and Market Trends
Typical Kensington Property Types
Amenities, Schools & Attractions in Kensington
How to Finance PCL Kensington Property
Kensington Property Prices and Market Trends
The property market in Kensington has been quite dynamic in Q4 2023 - according to Coutt's London Prime Property Index. With 82 property sales, it was the area with the most prime sales in London. However, it’s worth noting that the annual sales volume growth was -13.9%, indicating a slowdown in the market.
- The average discount on properties was -7.3%, which could be seen as a buyer’s market. Despite this, the average gross rental yield remained relatively stable at 4.12%, suggesting that rental properties could still provide a decent return.
When we delve into the details, we see some interesting trends across different price bands.
- Properties priced under £1M had an average sales price of £999 per square foot, a decrease of -3.6% from the previous year. These properties spent an average of 168 days on the market before sale, and the average discount for sold stock was -9.1%. The quarterly sales volumes for this price band decreased by -32.0%.
- In the £1M - £10M price band, the average sales price was £1,540 per square foot, a decrease of -1.4%. These properties spent an average of 157 days on the market before sale, and 78.4% of properties were sold at a discount to the asking price. The average discount for sold stock was -7.3%, and the quarterly sales volumes decreased by -15.5%.
- For properties priced over £10M, the average sales price was £2,262 per square foot, a decrease of -11.8%. These properties spent an average of 74 days on the market before sale, and the average discount for sold stock was 7.2%. Interestingly, the quarterly sales volumes remained the same.
Typical Kensington Property Types
- Luxury Apartments and Penthouses - Kensington offers a diverse range of luxurious apartments and penthouses, appealing to discerning buyers seeking the ultimate in city living. Prices for these properties typically range from £1.5 million to £12 million, with penthouses commanding even higher premiums due to their panoramic city views and bespoke features.
- Victorian Terraced Houses - The elegant Victorian terraced houses of Kensington are highly desirable, offering a unique blend of historical charm and modern amenities. Prices for these properties generally start from around £4 million, reflecting their larger size and the prestige associated with this architectural style.
- Period Conversions - Kensington is home to numerous period conversions, where historical buildings have been transformed into contemporary living spaces while preserving their architectural heritage. Prices for these properties can range from £1.5 million to upwards of £20 million for exceptional penthouses in historic conversions.
- Townhouses - The iconic townhouses of Kensington, spanning both the Georgian and Victorian eras, are a symbol of sophistication, with prices typically starting from £10 million. These properties are known for their spacious interiors, high ceilings, and timeless designs.
- Mansion Blocks - Kensington also boasts a number of mansion blocks - large apartment buildings from the Victorian and Edwardian eras. These properties offer spacious living accommodation and period features, with prices typically starting around £2 million.
Popular Kensington Streets
- Kensington High Street - This major London street is known for its blend of high-end retail and exclusive residential properties. Running east to west from Kensington Road to the Holland Park roundabout, Kensington High Street is a vibrant hub of activity, offering a variety of shopping, dining, and entertainment options.
- Portobello Road - Known for one of the most famous street markets in the world, Portobello Road is a vibrant and diverse community. The market stalls stretch for a mile all the way down Portobello Road and round the corner into Golborne Road. It’s a location that attracts tourists, locals and celebrities from all walks of life.
- Kynance Mews - Hidden away in quiet Kensington, Kynance Mews is a picturesque street known for its beautiful wisteria blooms in the spring and fall. The cobbled Kynance Mews is easy to reach and globally popular on social media, making it one of the most beautiful streets in London.
- Alexander Square - This residential square in Kensington is known for its charming Victorian houses and tranquil atmosphere. Alexander Square offers a unique blend of historical charm and modern amenities, making it a desirable residential address in London.
- Brompton Road - Running north to south from Knightsbridge to South Kensington, Brompton Road is a major London street known for its luxury retail and exclusive residential properties.
Kensington Rental Market
This steep pricing reflects the borough's desirable location and upscale reputation. However, the high rents present a significant barrier to entry for many prospective tenants.
- Rents grew by a substantial 7.2% between September 2022 and September 2023. If this growth rate continues, average rents could surpass £3,500 by 2025. The resilient demand likely stems from the borough's appealing amenities, excellent transport links, and proximity to central London.
- The rental market in Kensington is dominated by smaller properties, with 2-bedroom flats being the most prevalent at 35.2% of the rental stock. Larger homes with 4 or more bedrooms constitute only 3.7% of the market, reflecting the borough's limited space and high property values.
Investors seeking rental yields may find the most opportunities in the 1 and 2-bedroom segments, which cater to the area's professionals and affluent renters.
Amenities, Schools & Attractions in Kensington
Schools
Kensington is conveniently located near several prestigious schools renowned for their academic excellence, including The Lycee Francais Charles de Gaulle, Thomas’s Kensington, and Queen’s Gate School.
World-Class Attractions
The area boasts several world-renowned attractions, such as the Victoria & Albert Museum, The Science Museum, and the Natural History Museum, offering architectural splendour and enriching cultural experiences. Kensington Palace, a historic royal residence, is another must-visit attraction.
Michelin-Starred Restaurants
Kensington is a gastronomic paradise, home to several Michelin-starred restaurants like Kitchen W8, Launceston Place, and The Ledbury, catering to the most discerning palates.
Upscale Shopping Areas
The neighbourhood is a shopper’s paradise, offering a plethora of high-end boutiques, flagship stores, and charming arcades like Kensington High Street, and King’s Road.
Access to the City
Kensington’s central location provides excellent connectivity to the City of London, making it an ideal choice for professionals with convenient access to multiple Underground stations and efficient bus routes.
How to Finance PCL Kensington Property
Investing in Kensington’s exclusive property market requires securing appropriate financing. Clifton Private Finance offers bespoke finance solutions tailored to your long-term plans and investment objectives, including interest-only mortgage options that allow you to pay only the interest portion of the loan during the mortgage term, providing flexibility and cash flow management.
Our experienced mortgage brokers specialise in high-value property transactions in Prime Central London, ensuring you secure the most favourable terms and competitive interest rates for your Kensington investment.
With comprehensive consultations, exclusive lender partnerships, bespoke mortgage structuring, and ongoing support from our dedicated team, Clifton Private Finance is your trusted partner for navigating Kensington’s property market.
Call us at 0203 900 4322 or book a consultation to unlock the potential of Kensington’s property market.
