Prime Central London or the regions: choosing between capital and income

Most of our clients arrive with one question in two forms: is London still the right place, and is the yield worth having elsewhere. The honest answer is that they are different assets doing different jobs, and the portfolio usually wants some of each.

What Prime Central London does

Mayfair, Belgravia, Knightsbridge, Kensington and Marylebone are a store of value in a currency and a legal system that international families trust. Gross rental yields are low, often in the low single digits, and prices have moved sideways for much of the last decade after the tax changes of the mid-2010s. What the buyer gets is liquidity in a downturn, a home the family will actually use, and an asset that can be sold to a global pool of buyers at short notice. Since 2025 there has also been a pricing opportunity: several years of flat values, a softer pound and motivated sellers have brought Gulf buyers back to the top end.

What the regional cities do

Manchester, Birmingham, Leeds and Edinburgh offer new or recently built apartments at a fraction of the London price, with gross yields materially higher and tenant demand supported by universities and large employers. The trade-off is a smaller buyer pool on exit, more management intensity, and greater sensitivity to local supply. These assets are bought for income, in numbers, and managed as a business.

The middle: Greater London and the commuter belt

Canary Wharf, Nine Elms, Wembley and the rail towns to the west and south sit between the two: London’s tenant demand and exit liquidity with yields closer to the regions. Much of the block-purchase activity of the last two years has been here and in the prime fringe, where six or more units in one building can be bought together.

How we frame the decision

QuestionPoints to LondonPoints to the regions
Will the family use it?YesNo
Is income the purpose?SecondaryPrimary
Holding periodTen years and beyondFive to ten years
Management appetiteLightDelegated, but active
ExitGlobal buyer poolDomestic buyer pool

A common outcome for a family office is a London residence held personally or in trust, and a regional or Greater London portfolio held through a company for income. The two are structured, financed and managed differently, which is why we insist on settling the purpose before the search.

This note is general information, not advice. Yields and prices change; we model each mandate on current figures.