Celebrity neighbours – blessing or a curse?

Seeing how celebrities live can be depressing. Sprawling mansions jampacked with 21st century luxury evokes all kinds of envy. I was reminded of this when a luxury apartment recently listed for rent in a building once homed by Sir Winston Churchill.

In what could be yours for ￡19,500 a month, the 3962 sq ft property boasts five bedrooms, three bathrooms, three living rooms, access to communal gardens and a tennis court. A quick flick through the pictures shows - at first glance at least - a picturesque home, one perfectly combining classic design with modern comforts.

But, some commenters on a news story on this property begged to differ. It was pointed out that the flat probably looked completely different when Churchill moved in, and some of the updates weren’t reviewed well. The kitchen had a “crummy little hob”, and Churchill would have not lived in “the fake swanky style of today’s youth”, defined as “pokey” by another commentator.

Comment sections are notoriously dramatic, but this did get me thinking about the impact famous names can have on property. For investors, there could be a strategy in chasing celebrity postcodes, so long as they can stomach the downsides. Of which there can be plenty.

The right celebrity can attract a property premium

Living near a celebrity can certainly do wonders for your finances. Postcodes home to a high level of celebrity activity can be up to 49% higher than the wider area average, according to analysis from MoveStreets. In certain hotspots, such as Mayfair, the premium can easily top 100%.

This premium has proven so important for the ultra-prime scene some estate agents have incorporated it into their marketing efforts. In recent years, the luxury property firm Aston Chase took to promoting some of their properties based off famous residents who used to live there.

This includes A-star names such as Rihanna, Mark Carney, Dua Lipa and Damien Hirst. Mark Pollack, co-founding director of Aston Chase, even said the: “celebrity endorsement has become the modern-day Blue Plaque”.

Investors may not even have to try that hard to find out where these celebrities are based. Somehow, the press always finds out and is happy to share the news. Just a few years ago, Sting was outed as one of the first investors in the Battersea Power Station development, while Lewis Hamilton had his property portfolio exposed mere days ago.

Despite the upsides though, being near the rich and famous could be more hassle than its worth. Especially for dwellers.

Do celebrities make good neighbours?

Celebrities can easily have their drama spill over into their neighbours’ gardens. Even for those with quintessentially British talent or the X Factor.

Simon Cowell’s entourage has been known to enrage his Kensington neighbours. The angelic voice of Susan Boyle can also prove too much at times, with locals filing noise complaints in the past.

Additionally, while celebrities may raise values simply by being present, their questionable tastes, coupled with seemingly endless funds, could reverse any fortunes they bring.

Brits have a habit of embracing NIMBY-ism, which is often ramped up where famous faces are involved. Kate Moss’s neighbours weren’t happy when she spent millions renovating her home and installing CCTV cameras. Ditto for Rita Ora, who ended up on her neighbour's wrong side when she added hedges and renovated her home, clogging up the road with lorries while doing so.

These aggrievances can stretch beyond simple aesthetics too. A single homeowner’s poor taste in furnishings, building work or extension plans can knock thousands off their neighbour’s house values.

Ultimately, if buyers want to chase celebrity influenced growth, that’ll just need to be factored into a wider investment strategy. As is the case with the financials, end-buyers, tax strategies and the like, the pros and cons will need to be weighed up.

Buying a home near (or once owned by) a popstar or artist could be worthwhile down the line. Investors will just need to ask themselves if they can cope with limousines on the driveway or paparazzi in the bushes in the meantime.?