An estate agent says landlords should consider investing in south west London.
Douglas And Gordon, which launched its Emerging Prime Index last week identified areas such as Clapham, Earlsfield and Southfields, where prices rose 5.5% and 2.9% respectively quarter-on-quarter in the first part of this year, as ripe for buying.
The firm’s executive director Ed Mead said: “This quarter’s index confirms that emerging prime has become the sweet spot of the professional private rental sector.
“One-bedroom flats in the £300,000 price range are one of the best investments, given their protection from political interference and the demand from young professionals who increasingly feel more at home in places like Clapham than central London.
“It is very telling that for many buyers – both domestic and overseas – emerging prime areas are achieving a social cachet they’ve have never had.
“If Peter York was writing the Sloane Ranger Handbook again, we suspect he’d be writing about the Northcote Road in Clapham and not the Kings Road.
“While the pre-election period is causing capital growth of larger properties to pause, we still think there is still some way to go on value.
“For instance, in Clapham we see demand continuing in the long term given the amount of undeveloped stock in the area.
“We anticipate the upward trend in prices to be reinstated if no mansion tax is introduced.”
Not everywhere is a sure bet, however. Properties in Putney and Battersea, which saw spectacular growth in 2013 and 2014 thanks to well-heeled families snapping up family houses, saw a standstill in the first three months of 2015.