London Boroughs for Property Investment Under £1 Million

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New research on London boroughs has shown that Westminster has a greater proportion of under-priced properties below £1 million than any other London borough.

Analysis by fintech firm Proportunity, also found other central London boroughs such as Kensington and Chelsea, Hammersmith and Fulham, Kingston upon Thames and Camden all had a large proportion of under-valued properties.

While most of these areas are quite pricey, the research only surveyed properties under £1 million, meaning that prime central London penthouses and mansions were excluded.

Proportunity’s AI-powered real-estate analytics platform was used to examine property listings from online portal Zoopla, then compared hundreds of data points on everything from floor space to local crime stats in order to work out what a property’s true value should be.

By comparing each property to nearby homes that share similar characteristics on a price per square metre basis, they look to identify which are currently under-priced, highlighting good buying opportunities for would-be buyers and investors.

Westminster, home to the prime minister, was found to be the borough with the highest proportion of undervalued properties. Nearly three-quarters (74 per cent) of the London boroughs’ Zoopla listed properties in their platform were under-priced, meaning existing homeowners and would-be buyers in the area are sitting on a potential goldmine. Of these, 50 per cent were more than 10 per cent under-priced.

Coming in a close second was Kennsington and Chelsea, where 72 per cent of properties in the area were judged to be undervalued. Of these properties, 29 per cent were under-priced by more than 20 per cent according to Proportunity’s AI-powered real-estate analytics.

Rounding out the top five were the London boroughs of Hammersmith and Fulham, Kingston upon Thames and Camden, with 71 per cent, 69 per cent, and 65 per cent of properties undervalued respectively.

With Brexit uncertainty clouding the London property market since 2016, and then the top end of the market hit by stamp duty reform targeting high value homes, these areas have all seen house prices fall or stagnate as buyers cool on the UK capital.

However, research which tracks house prices back to 1995, suggests that property prices could be set to rebound, as buyers return to central London areas that have been avoided in recent years.

On the other end of the scale, Proportunity found that Newham had the least undervalued properties in the capital, with only 36 per cent of the borough seen as undervalued by the fintech company.  The other London boroughs with the least number of undervalued homes were Redbridge, at 37 per cent, Enfield, at 41 per cent, City of London, at 42 per cent, and Tower Hamlets at 43 per cent.

Vadim Toader, founder and CEO of Proportunity, said: ‘It’s no surprise to anyone that central London’s housing market has been hit hard by Brexit and stamp duty reforms, but our analysis reveals the true scale to which property prices have been hit, with the vast majority of homes in highly desirable areas such as Hammersmith and Fulham found to be under-valued.’

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