The property market in the UK never ceases to amaze and this week saw the listing of an entire Georgian terrace in what is deemed as a “once in a decade” sale. The row of eight grade II listed properties is located at 46-60 Huntly Street in Bloomsbury. It is not very often an unbroken freehold terrace of residential properties comes available in the UK let alone in central London. So, what do you get for £15.5 million?
Three and four-storey Georgian properties
This terrace of 18th century three and four-storey properties is certain to catch the attention of many investors. The properties themselves have been converted into 23 individual flats and at this moment in time they deliver an annual rent of £608,000 – a yield approaching 4%. When you bear in mind that UK base rates are currently at record lows, in real terms, this yield is not as low as it might seem at first glance.
The properties are owned by the charitable arm of University College London hospitals and have not been on the market for more than 55 years. It is safe to assume there have been significant upgrades along the way but there may be scope to upgrade further, perhaps offer a luxury experience and try to improve the rental income.
Small properties sell well
When you bear in mind you get 23 flats for £15.5 million this works out at an average value per flat of just under £674,000. We know that the London market is currently struggling, we know that the high-end has been hit hardest so smaller properties in the region of £500,000 up to £700,000 should still sell relatively well. As the properties currently stand there is 16,655 ft.² of living space which equates to around £930 per square foot.
It is also interesting to see that there is a variety of different properties ranging from studios to one and two-bedroom flats ensuring that there will be something for every potential buyer. At this moment in time 20 of the flats are let on assured shorthold tenancies and contractual tenancies, two are vacant and one is occupied by an elderly resident who has a protected tenancy arrangement.
Why sell now?
Many are asking why the hospital’s charitable arm is jettisoning £15.5 million of central London property in what is currently a difficult market. It is worth noting that the properties have been held by the charity for many years and will still be sold at a significant profit. The funds raised will be used to expand and redevelop in other areas of the charities real estate portfolio.
Once in a decade opportunity – Georgian terrace
It is not very often that eight properties on the same street are listed together let alone central London prime property. The £15.5 million asking price does not seem to be excessive when you bear in mind there are 23 different flats with current income in excess of £600,000 per annum. In some ways this is a unique type of sale but it will still give an interesting indicator of the relative strength of the London property market.