Principal Tower, City of London: Prices, Rental Yields and Investment Guide

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Hello everyone. What would it be like to live in a skyscraper signed by Norman Foster, in London’s financial centre? Today, Principal Tower is what we are looking at today!

For prices, taxes and the whole buying process, see our guide: UK Property Guide

The Gherkin, the Cheesegrater, the Walkie-Talkie. You know the iconic towers that make up the City skyline. Principal Tower is a 50 storey residential tower rising right among them. Its design is by one of the most famous architectural practices in the world, Foster + Partners. You walk 5 minutes to Liverpool Street station and the Elizabeth Line is at your door. Yes, you read that correctly: you are living in the very heart of the City.

Prices

• One bedroom apartments: £1,100,000and up
• two and three bedroom options available
• Apartment sizes: 50 m², 265 m²
• 50 floors, a Foster + Partners design
• Address: Principal Place, Shoreditch High Street / Worship Street, London EC2A

The tower is complete, so there is no off-plan waiting period. You view the apartment, see the view and decide. the advantages of buying a new build home That is an important difference for anyone who wants to live there without carrying handover risk.

Why Principal Tower?

Location: exactly where the City meets Shoreditch: this area is one of the most interesting places in London. On one side of you the largest financial centre in the world, on the other the galleries, independent cafes and nightlife of Shoreditch. Amazon’s United Kingdom headquarters is in the same complex, and Old Street, the "Silicon Roundabout" where Google and the technology companies cluster, is an 8 minute walk away.

• Liverpool Street, a 5 minute walk. The Elizabeth Line, Central, Circle, Metropolitan, Hammersmith & City and the national rail lines at one point.
• Shoreditch High Street Overground, a 4 minute walk
• Old Street (Northern Line), an 8 minute walk
• on the Elizabeth Line Bond Street 8 minutes, Canary Wharf 6 minutes, Heathrow about 40 minutes
• Bank and Moorgate 10 to 12 minutes on foot

An area of constrained supply: residential supply in the City is very limited. The area is mostly offices; there is almost no land left on which a new residential tower could be built. That is a strong argument for protection of value in the long run: demand continues while supply does not grow.

Daily life: living without taking the tube

Leave the house at 8:40, be in your office at Bank at 8:50. On foot. In the evening the restaurants of Shoreditch, Spitalfields Market and Brick Lane are a 10 minute walk away. At the weekend you are shopping on Bond Street in 8 minutes on the Elizabeth Line, and boarding a plane at Heathrow in 40. At the foot of the tower is the preserved eighteenth century The Clerk’s House building, a historic detail beneath the modern tower.

Principal Tower rental yield

The City and Shoreditch are among the areas of London with the highest corporate tenant demand. One bedroom apartments usually let for £3,800 to £4,200, 2+1s £5,000 to £6,000 a month. That puts the gross rental yield in the 4.1-4.6% band.

Tenant profile: bankers, law firm partners, technology company executives and international staff posted to London on a company budget. This segment does not haggle over the rent and stays a long time. If your priority is a higher return, high yield buy to let areas is worth reading.

The shared areas and the details that set Principal Tower apart

The Foster + Partners design does not stop at the facade; the shared areas are to the same standard:

• 24-hour concierge: parcels, security, reservations and greeting guests; service at a hotel standard.
• Indoor swimming pool: a pool for residents only; in the City that is a serious privilege.
• Spa & Sauna: wet areas attached to the pool and a relaxation section.
• Sports Hall: a fully equipped residents-only gym with no membership needed.
• Rezidans Salonu (Residents’ Lounge): a shared living space designed for entertaining or working from home.
• Private balcony or terrace: outdoor space with a panoramic City view in most of the apartments.
• High specification interiors: branded kitchen appliances and premium bathroom details as standard.

Energy efficiency and comfort

Thanks to modern insulation, a high performance facade and central systems the apartments are typically in the EPC B band. Against London’s 100 year old Victorian flats it makes a serious difference to the bills. It also matters if you let the property: minimum energy standards for rented homes in the United Kingdom are steadily tightening.

Who is buying?

Mostly finance and legal professionals aged 35 to 55, executives looking for a "pied-a-terre" to stay in during the week while working in the City, and international investors after a prestigious address. One bedroom apartments are favoured for investment and weekday use; two and three bedroom layouts by families moving to London.

Frequently asked questions

What is the tenure? Leasehold, with newly sold apartments typically given a term of up to 999 years, which in practice gives security close to freehold ownership.

Can I buy remotely from abroad? Yes, contracts are signed digitally. For the details, remote property purchase guide page.

Can I use a mortgage? Foreign buyers can normally borrow up to 65-75% of the value. UK mortgages for foreign nationals sets the process out in detail.

What is the tax cost? For buyers resident outside the United Kingdom, stamp duty carries a 2% surcharge is added. In this price band stamp duty is a serious item; for the calculation, our stamp duty article is worth a look.

How much is the service charge? On prime towers with a pool, a spa and a 24 hour concierge it is in the band of £8 to £12 per square metre a year. Do put it in the budget when working out the net yield.

Is the area quiet at weekends? Parts of the City empty out at the weekend, but because Principal Tower is on the edge of Shoreditch you do not have that problem: Shoreditch is one of the liveliest areas of London at the weekend.

The land in the City has run out; there is nowhere left to build a tower. For anyone who wants to own an apartment in a completed tower with a pool and a concierge, signed by Foster + Partners, Principal Tower is one of the clearest options in London. For the apartments currently available, our project page.

For a detailed price list, floor plans or an appointment, reach us on the WhatsApp button in the left corner of the screen.

Total cost: what you actually pay when you buy at Principal Tower

Many overseas buyers look only at the apartment price and meet a surprise at completion. Let us work out the real cost on a £1,100,000 apartment. Stamp duty (SDLT) in the United Kingdom is banded: 0% up to £125,000, then 2%, 5%, 10% and 12%. On top of that, non-residents pay a 2% surcharge, and if you already own another home, a further 5% additional dwelling rate applies.

With a mortgage there are also valuation and bank charges, and if you let the property, management commission and income tax. The figures above are indicative, based on a £1,100,000 entry price; we prepare the exact calculation for your own scenario.

The Principal Tower buying process, step by step

If you are buying from another country, the process runs like this:

• 1. Choosing the apartment and reserving it. We go through the floor plans, the aspect and the view. The apartment you choose is usually held with a reservation fee of £5,000 to £10,000.
• 2. Appointing a solicitor. An independent English property solicitor (conveyancer) is appointed. That solicitor acts for you, not for the developer.
• 3. Identity and source of funds checks. You will be asked for a passport, proof of address and documents showing the source of your funds. This step is compulsory in the United Kingdom, and having the papers ready shortens the process.
• 4. Exchange of contracts and deposit. Contracts are usually exchanged within 21 days of the reservation, with a 10% deposit. The signature can be given digitally from abroad.
• 5. Stage payments. In off plan projects these follow the payment schedule; for completed apartments the step is skipped.
• 6. Completion. The remaining balance and the stamp duty are paid and the title is registered in your name. For completed apartments this stage can take four to eight weeks.

You can run the whole process from your own country; you do not have to travel to the United Kingdom.

Risks and what to watch for

We have set out the strengths; in fairness there are points to watch as well. For Principal Tower, these are the ones worth pausing on:

• High price band: the cost per square metre is among the highest brackets in London; the barrier to entry is high.
• The City quietens down at the weekend: because the scheme is on the edge of Shoreditch this problem is largely absent, but some aspects look onto office blocks.
• High service charge: on prime towers with a pool, a spa and a 24 hour concierge it is in the band of £8 to £12 per square metre a year.
• Low rental yield: the gross 3.5-4% band. The argument here is protection of value and the quality of the tenant, not a high yield.

None of this makes the project a bad one, but there is a wide gap between buying with your eyes open and finding out afterwards. We give every client this list up front.

How does Principal Tower compare with the alternatives?

Before you decide, it is worth looking at the other projects in the same budget band:

• One Bishopsgate Plaza: in the same district, for anyone who wants a hotel serviced concept.
• One Thames Quay: if a river view in Canary Wharf is the priority.
• Trillium Paddington: for anyone after the assurance of Berkeley in Zone 1 and a Heathrow connection.

We can work out together which project fits your goal, judged on budget, intended use and exit plan. For an overview, our guide to UK property investment for international buyers is worth reading too.

Answers to the most common questions on this topic: Is Buying a Home in London a Good Idea?