Buyers can expect to pay a premium if they want to live in a hotspot area. High demand pushes prices up, particularly if supply is restricted and more owners are holding on to assets so they can benefit from capital gains. Surprisingly many buyers are willing to pay the prices though, particularly for areas that offer exactly what they want.
The major reason buyers are willing to pay premiums to live in areas is because they want to be alongside their peers. Young professionals for example want to live in a location that has a great community feel around their working schedule.
The amount people are willing to pay in premiums to live in areas amongst their peers is impressive. A report by Lloyds Bank claims that in the twenty most popular areas for young professionals, premiums over surroundings areas are an average of 13% or £71,158.
An incredible sixteen of the top twenty most popular hotspots for young professionals are in London. Hammersmith and Fulham found itself on the list because it is such a central location with a well established reputation. Other locations such as Wandsworth, Battersea, and Brixton also found their way on to the list.
The thing all of the top twenty areas have in common is they are located close to busy centres and leisure opportunities. These are big selling points, particularly for young professionals who want to be able to strike a good balance between their work and social lives.
With high demand and premiums on offer there are good opportunities for investors. At Finefair we provide a myriad of services including holding the honour of being one of the best providers of guaranteed rent Hammersmith and Fulham has to offer. We can assist clients in making the right investments, offering our full support and tailoring services to suit different needs.
If you would like to find out more please get in touch with our team; we are always pleased to help.