Would you pay £600,000 for a 290 ft.² property in London!

The location is Britten Street, Chelsea and the property in question is one of central London’s smallest detached homes. This property offers just 290 ft.² of floor space and by all accounts it is in need of some serious renovation. However, despite the size of the property and the need for further investment it is on the market for a staggering £600,000, nearly 3 times the average property price in the UK!

What makes this so special?

This is the first time this particular property has been on the market since 1969 and it has a place in the heart of the London property market. The “unique” property is a freehold investment offering an eye-catching view over St Luke’s Park in Chelsea. So, the location is certainly eye-catching but exactly what do you get with this property?

The front door opens straight into the reception room where there is a doorway leading to the kitchen and shower room. The stairs lead up to the only bedroom in the property which has a window overlooking St Luke’s Park. It is obviously the ultimate one-bedroom property and rather bizarrely it is been sold as having potential for a “roof terrace” with additional planning permission.

Is there interest in the property?

As you might have guessed, the estate agents looking after the sale of this diminutive property have confirmed there has been interest even though it has only been on the market one week. We can only assume that the media coverage this property is attracting can only help competition when we get to the business end of potential buyer interest. It is amazing to think that this property is 1/14th of the size of the average detached prime property in London, yet people still appear to be willing to pay around £600,000.

The price of this property might set the alarm bells ringing for some investors looking at the UK property market amid suggestions we are in the “silly season”. The fact is the property is well located, comes with the freehold and is unique in its own right thereby it is difficult to compare with anything else. If you were to see a whole flurry of similar properties advertised at “crazy money” prices it may be time to think again about the UK property market, especially London, but this does seem to be a one-off.

London property market showing signs of life

As we have touched on in some of our recent articles, there are signs of life in the London prime property market after a difficult period. The uncertainty in the aftermath of the Brexit vote caused a ripple effect across the market although the collapse of sterling against the likes of the dollar is attracting foreign investment. It will be interesting to see how everything settles down after the Brexit negotiations begin but maybe we are looking at the London property market too harshly?

There has and will continue to be a backbone of interest from property investors around the world. One potential fly in the ointment could be issues with the London financial markets and whether indeed some services will need to be relocated within the European Union after the UK leaves.
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