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AI technology reveals London’s top property investment hotspots

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New research from AI powered, property investment portal www.oneandonlypro.com reveals the top 10 best areas in London for property investment, despite a softening of property and rental prices in the capital, over the last few months.

One and Only Pro’s unique algorithm shows that Marylebone takes the top hotspot, with 10.6% of properties found to have ‘Diamond’ investment status by. Despite Marylebone’s high property prices an average of £925,386 – the area offers London’s best Return on Cash Investment (ROCI), sitting at a high of 65.1%.

In second place, with an average Diamond property price tag of £654,495 was North Kensington with 4.4% of Diamond properties, followed by Notting Hill, which came in third place with 4% and an average £674,495 Diamond property price.

Fourth and fifth place went to Aldgate and Hampstead, both with 3.9% of properties offering a sound investment, with an average Diamond property price of £725,000 and £925,865 respectively.

The analysis ranked London areas based on the percentage of Diamond properties on the market in May 2019.  Investment properties across London were given a score from one to ten, with properties rated ten dubbed Diamond properties and the most likely to increase in value. Properties which score ten are a once in a lifetime investment, that will sell quickly.  Properties with scores between seven and nine will outperform other similar properties.

Top Ten Property Investment Hotspots in London

Postcode % of properties scoring 10 Average ROCI of properties scoring 10 Average price of properties scoring 10 Area in London
NW1 10.6 65.1 £925,386 Marylebone
W10 4.4 40.2 £654,495 North Kensington
W11 4.0 36.5 £674,495 Notting Hill
EC3 3.9 20.9 £725,000 Aldgate
NW3 3.9 42 £925,865 Hampstead
W6 3.8 37.2 £360,909 Hammersmith
E13 3.6 46.6 £143,500 Plaistow
SE8 3.3 29.2 £325,000 Deptford
NW8 3.1 44.1 £512,596 St Johns Wood
SW3 2.8 33.1 £777,995 Chelsea

Source: One and Only Pro, May 2019

* Source: ROCI is the return based on the actual deposit or money invested in a property in the first 12 months, whereas yield is the percentage return based on the full purchase price of the property.  In ROCI, expenses such as service charge, ground rent and insurance are included. A ROCI of 65.1% would mean in the first year, the rent will equal 65% of the deposit and within a two years, an investor would have earnt all their deposit back.

Henri Sant Cassia, CEO at www.oneandonlypro.com said, “Our AI powered research shows that property is all about location and it’s currently better to buy in the prime areas of London, rather than the cheaper suburbs, as investors are receiving more for their money, in terms of short and long term value.

“The prime London properties priced between £700,000 and £950,000 in our top five hotspots are offering surprisingly good capital growth potential, rental yields and cash returns in the first 12 months.

“Many investors dismiss central London as unaffordable and offering poor rental yields, compared to the rest of the UK, but that simply is not the case.  Our algorithm has analysed thousands of properties in central and greater London and the results show that real money can be made in there.

“Our data analysts and researchers have checked the rental yield of properties in London.  They looked for the actual rents being achieved across all areas for comparable properties and took into account market trends.  Only properties offering viable investment opportunities are considered, so shared ownership, retirement and other unsuitable property types are stripped out.

“Savvy property investors can pick up below-market-value properties in central London, thanks to mounting Brexit fears and a dip in confidence.  There has never been a better time to invest in the capital.”

One and Only Pro predicts which properties are most likely to see the highest yields and capital growth, using a mathematical analysis to provide investors, lenders and mortgage brokers with an easy to understand scoring system, allowing them to identify the best deals on the market.  The unique algorithm shows the properties most likely to increase in value and demonstrates potential yields, providing highly valuable information, at the touch of a button.




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