Is Bayswater the New Kensington? A Peek Inside the Up and Coming Hyde Park Neighbourhood

Areas such as Kensington and Chelsea feature among the top ten richest neighbourhoods in London. Property prices in these areas are more than double the London average of c.£700,000. Buy a property to rent out in Chelsea and you could earn an impressive £5,824 per month. Other areas on the rich list include Notting Hill, with an average property price of just over £1m, West Brompton at just under £1.1m, and Marylebone at around £1.7m. Knightsbridge tops the list at £3.2m, closely followed by Mayfair at £3.1m.

There is a new kid on the block for 2024, however, when it comes to high-end property. Nestled next to Notting Hill, to the north of Hyde Park, is Bayswater, an area many are predicting will be the next big thing on the London property scene.

Bayswater's blend of cosmopolitan charm and investment potential makes it an attractive option for UAE and other international residents looking for a second home in London. With its proximity to prestigious areas such as Kensington and Chelsea, alongside relatively more affordable property prices, Bayswater offers a unique opportunity for high-net-worth individuals from the UAE to invest in one of London's emerging prime locations.

What makes Bayswater a great place to live?

Often previously seen as ‘the poor man's Notting Hill’, Bayswater has benefited from buyers priced out of nearby areas looking for more space for their money. It offers a similar architectural appeal to Notting Hill, with its tall, elegant white Victorian and Georgian terraced homes. Nearby Hyde Park and Kensington Gardens offer over 600 acres of space for sport, recreation and leisure. The neighbourhood also has a cosmopolitan feel, with an abundance of bars, clubs and restaurants.

Bayswater offers a diverse culinary scene for all tastes, including a range of Arabic, Chinese and Brazilian eateries, as well as several Lebanese grocers. The Athenian Grocery is the oldest Greek delicatessen in the UK and is located near Queensway. Restaurants in the area include the award-winning Nipa Thai restaurant, Taormina Restaurant, which has been serving Italian food since 1960, and Al Waha, a highly reviewed Middle Eastern restaurant.

Bayswater is also a hotspot for the arts. The Bayswater Road Exhibition is an open-air art fair that takes place every Sunday and has been running for over 60 years. The exhibition stretches along Bayswater Road, between the Lancaster Gate entrance to Kensington Gardens and the Marlborough Gate entrance, with artists displaying their work directly on railings along the street. The area also features plenty of galleries, including The Serpentine in nearby Hyde Park and the Flow Gallery on Needham Street.

For parents or aspiring parents looking to raise a family in Bayswater, there are several schools in the area, including Hallfield Primary School, St Stephen's Church of England Primary School, Holland Park School, Westminster Academy and Lansdowne College.

Bayswater also has excellent transport links. Bayswater Tube station itself is on the Circle and District lines, while Edgware Road, Lancaster Gate, Queensway, Royal Oak and Paddington are all close by. Additionally, with the opening of the Elizabeth line at Paddington Station, commuters can reach London Liverpool Street in around 10 minutes and Canary Wharf in just over 15 minutes, making Bayswater an ideal spot for commuters looking for a prime Zone 1 location.

Why is Bayswater such a good long-term investment?

One of seven neighbourhoods surrounding central London's biggest park, W2 has historically seen relatively little top-end development activity. In 2012, however, this began to change when developers Minerva and Northacre developed The Lancasters on a prime site overlooking Hyde Park. This game-changing residential scheme, considered to be the first super-prime development in W2, transformed 15 large stucco houses into 77 luxury flats behind an original 400ft-long French Renaissance-style façade.

In 2020, plans were announced to transform the former Whiteleys shopping centre in Bayswater into a new multi-million-pound residential, retail, dining and hotel complex. One of London's first luxury department stores, the 109-year-old Grade II-listed building suffered following the opening of the nearby Westfield London in 2008. Under new plans designed by architects Foster + Partners, it has been transformed into 139 apartments and townhouses, 20 new shops and restaurants, a cinema, an upmarket gym, and a Six Senses hotel and spa, the first of its kind in Britain.

By 2026, the previously run-down Queensway shopping street is expected to act as a new gateway to Hyde Park, with The Whiteley at one end and a new development called Park Modern at the other, offering a pedestrian route from Hyde Park to Notting Hill. Park Modern comprises over 50 apartments offering views of Kensington Gardens and Hyde Park, high ceilings, valet and concierge services, and a leisure suite with a pool, gym and treatment rooms. Apartments are priced from £2m to £11m.

A further new development of 36 apartments and duplex penthouses is available at No. 18 Porchester Gardens, with prices starting from £1.625m. Exclusive membership is available to residents, offering access to The Whiteley's residents' reception lounge and library, club room, and the Six Senses spa and swimming pool.

Several other sites are currently being considered for redevelopment in the Bayswater area, making it an increasingly attractive long-term investment location with significant growth potential. This could be a strong option for overseas buyers looking for a second residence in the UK that also offers potential as a long-term investment.

Arranging finance for a property in Bayswater

The average house price in Bayswater is now around £1.16m, with top-end properties worth considerably more. So, if you're serious about buying here, you'll need to consider your financing options. Typically, high street lenders offer mortgages of up to £1m, while the few that do offer larger loans are often rigid in their criteria.

A million-pound-plus mortgage broker provides expertise in dealing with larger property transactions, as well as access to a range of private banks and lenders familiar with the needs of high-net-worth individuals. These lenders tend to assess each applicant holistically, considering factors beyond income, such as assets, bonuses, shares and other investments. Private lenders may have a broader risk appetite and can tailor solutions to unique financial circumstances, even where income is structured unusually.

This type of specialist broker may also have access to preferential rates and, importantly, can leverage established lender relationships to help ensure a mortgage application is processed as quickly and efficiently as possible.

To find out more about new developments in Bayswater, or to discuss financing for your new million-pound-plus home, please contact Enness.