It has not always followed that a strong sales market necessarily translated into high rental prices; in some respects Marylebone is no different. The ‘silly season’ of September has now passed in the lettings market, with the corporates, students and families moving in for the winter and Marylebone is seen as the place to be. But is it still good value for money?
Across central London rental rates are up since 2013, estimated by Savills to have grown by 2.7% in the Prime Central London market. Much of this growth has come in family homes (3.4%) whereas flats have only risen 0.9%. With three quarters of these renters being from overseas and with half of them working in financial services, the success of Marylebone’s rental market is heavily tied to the City of London.
Christian Lock-Necrews of Knight Frank says “Marylebone is a victim of its own success in many ways. The market is strong, because it is a great place to live. It is an area that relies heavily on corporate relocation.” As the global economy recovers, corporate relocation clients have increased.
However, the demand is changing and becoming more varied. There is a steady diversification of the tenant profile with a move away from financial services to media and technology. This change has been reflected in neighbouring Ftizrovia. “The traditional rag trade has been replaced with media companies. It is catching up in terms of W1 and with big positive developments it will only continue, but for the moment it is still behind”, says David Caldeira of Robert Irvings Burn.
With this continued change in the London economy it should provide a sustainable long-term base for continued growth in the rental market. According to Sophie Chick of Savills Research, Marylebone remains the cheapest average rent for both apartments and houses in the Prime Central London bracket.
“Good value for money is subjective. At the moment there are still some great deals and a few bargains to be had. There is a lot of supply of two bedrooms whereas one bedrooms are harder to find”, says Julia Garber of Sandfords. This is reflected in the stabilisation of rents, particularly at the lower end of the Marylebone market.
This is something that is being noticed by domestic clients. “We have noticed tenants moving back into the centre after having moved away a few years ago. Whilst rental values in Zones 2 & 3 have risen along with the cost of travel, central London rents have stabilised over the last few years and now seem to offer value for money”, observes Matthew Fine of Hunters.
It would appear that Marylebone, relative to its fellow super prime neighbours still offers good value for money. As rents slowly creep up in other areas of London, transport links improve and more people discover our corner of London, it may not be long before Marylebone catches up.