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

Areas such as Kensington and Chelsea feature in the top ten richest neighbourhoods in London. Property prices in these areas are more than double that of the London average of c£700,000. Buy a property to rent out in Chelsea and you could make yourself 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 is top of the list at £3.2m, closely followed by Mayfair at £3.1m. 

There’s a new kid on the block however for 2024, 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 is going to 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 residents looking for a second home in London. With its proximity to prestigious areas like Kensington and Chelsea and 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 seen previously as ‘the poor man’s Notting Hill’, Bayswater has benefitted from buyers priced out of nearby areas looking for more space for their money. It offers a similar appeal architecturally to Notting Hill, with its tall elegant white terraced Victorian and Georgian homes. Nearby Hyde Park and Kensington Park offer over 600 acres of space for sport, recreation, and leisure. The neighbourhood has a cosmopolitan feel about it, 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, located near Queensway. Restaurants in the area include the award-winning Nipa Thai restaurant, Taormina Restaurant serving Italian food since 1960, and Al Waha, a top 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, including Hallfield Primary School, St Stephen’s Church of England Primary, 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 recent opening of the Elizabeth Line at Paddington Station, commuters can now reach London Liverpool Street in 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 precious little top-end development activity. In 2012, however, this all changed, 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 revamp the run-down former Whiteleys shopping center 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 mall suffered after the opening of the nearby Westfield London mall 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 one in Britain. 
By 2026, the previously run down Queensway shopping street will 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, extended ceilings, valet and concierge services, and a leisure suite with 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, retailing from £1.625m. Exclusive membership is available to residents, offering access to The Whiteley residents' reception lounge & 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 a very lucrative investment for the long term, with lots of growth potential. This could be a great option for people overseas looking for a second residence in the UK as a potential investment.  

Arranging finance for a property in Bayswater  

The average house price in Bayswater is now around £1.16m2, 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; the few that do offer larger loans, are often very rigid in their criteria.  

A million plus broker provides expertise in dealing with larger property transactions, as well as access to a range of private banks and lenders who are 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, or other investments. Private lenders usually have a broader risk appetite and can tailor solutions to your unique financial circumstances, even where income is structured unusually, often with no upper lending limits.  

This type of specialist broker may also have access to preferential rates and importantly can leverage their excellent relationships with lenders to help ensure your mortgage application is processed as quickly and efficiently as possible, making your new home a reality sooner than you think.  

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