London-based property investment business Track Capital has analysed which areas should have provided investors with the best returns if they bought property during the last financial crisis, in 2009.
Top of the list is the London borough of Notting Hill, which could have supplied investors with a 376% increase in gains, following an average £2m increase in value per dwelling.
London’s boroughs make up the majority of the top 20 locations, with Dulwich (253% value uplift), New Cross (193%), Clapton (180%), and Southgate (172.78%) completing the top five areas with the greatest gains.
Outside of London, the CB3 area of Cambridge has seen the average property value increase by almost £500,000 – a 164% uplift.
Properties in Clayhall, Essex, have risen from an average of £213,500, to £559,224 (a 161% gain), while in Manchester’s Hulme, houses have gained 153% value, and Virginia Water in Surrey has seen property prices surge to almost £2m, a 147% increase.
Previously affordable homes in St Leonards, East Sussex, have seen a value increase of 140%, with houses previously valued at £105,826 now selling for £254,332, taking them beyond the reach of most first-time buyers.
In terms of the buy-to-let market, in the MK9 postcode area of Milton Keynes anyone who invested in a rental property with a gross rental yield of more than 5% will have seen a 109% increase, taking the value of their purchase from £122,684 to £256,500.
Nick Hyland, director at Track Capital, said: “You don’t need figures like this to understand that property value in London has skyrocketed in recent years, but I suspect that the magnitude of the ten-year uplift in areas that we’ve long considered trendy, such as Notting Hill, will come as a surprise to many.
“But the really interesting part of this research is how the areas outside of London have fared. Our research reiterates how well the South East of the country has performed since 2008.
“Over the next 10 years I expect to see some of the North West’s postcodes perform in a similar manner as they enter the relevant stage of the property cycle, as regeneration takes place and transport links improve.
“And this type of medium-to-long term analysis simply reinforces the benefits that buying in a softer market can bring.”