To celebrate, Gem Invest have put together a report on the top performing areas of the capital in 2012.
Gold: KENSINGTON
Kensington is the worst kept secret in property circles, why? Because a combination of demand from city professionals and overseas wealth heading into central London means prices are likely to continue to rise in 2012.
Kensington contains a high level of corporate lets, from the banking sector in particular which means landlords can benefit from high and rising rental income in addition to capital growth.
There is also very little land available for development in Kensington which results in upward pressure on property value.
This has resulted in the average cost of £890,000 for property in sought after areas of Kensington.
This will put it beyond the level of the average buy-to- let investor , but there are still 'bargains' available in North Kensington, where a small two-bedroom period house can be purchased for £380,000
Silver: SOUTHWARK
Southwark is now beginning to rival prime central London in terms of rentals. Its close proximity to the City and a number of new developments in the area have made this a firm contender for property investors in 2012.
Southwark is a classic up and coming area of London, benefitting from investment in regeneration, landmark architecture and improving infrastructure.
The market is further buoyed by the arrival of businesses that have been relocating to the borough in their droves to take advantage of cheaper office space than that available in the City.
This will only bring a new wave of potential homebuyers and renters to the area in 2012.
According to the latest Q4 2011 data from Property Consultants, Cluttons, studio apartments in Southwark are achieving average rents of £325 per week, while one-bedroom properties are letting for £500 per week, compared to £328 and £550 respectively in areas of prime Central London.
Bronze: WANDSWORTH & BATTERSEA
What we call 'prime central London property' is beginning to incorporate property in surrounding boroughs and this is becoming increasingly evident in Wandsworth and Battersea.
Previously on the fringes, the area has seen property prices increase significantly according to the latest quarterly data by 3.8%.
Looking for value is difficult in the present London property market, but you are likely to get strong returns when investing just outside central London in areas like Wandsworth.
Large houses close to a selection of very good schools has meant that Wandsworth is in big demand following a sustained period of price growth and strong rental demand.
The area has also become a favourite with celebrity types based in London with the South Bank and GMTV being easily accessible easily. The most desirable areas are in the streets in and around the common.
