With property prices on the rise in the UK, you would expect that a house in an affluent area like Chelsea, south-London, to easily cost well over £600K. However, would you believe that someone bought a garage in the area for that amount?
It seems that inner-London garages have been fetching impressive prices recently. Estate-agents to the rich and famous, Savills Auctions, recently sold a garage in Chelsea for £670,000, with the buyer having to pay an additional £23,500 in stamp duty.Shocking as it may be, this has become a trend for London estate agents. Foxtons recently sold a single garage in Kensington for £200,000. Elsewhere in London garages are being rented out for as much as £650 a month!
“There have been some unique opportunities and people are realising their value,” Chris Coleman-Smith, Head of Auctions at Savills, told the Daily Mail.
The surge in the number of high-end garage sales is staggering. Savills saw seven single garages come to auction in 2016, compared to six over the course of the previous nine years.
“If you bought a garage ten years ago in central London you are sitting on a goldmine. Some areas have doubled in value in the past five years. Their scarcity value is pushing up prices.”
Parking spaces are certainly a rare commodity in cities like London. Companies like JustPark have been able to make a business out of renting spaces to tourists and commuters. Meanwhile, commuter towns are becoming increasingly popular as more and more workers opt to take the train and avoid early-morning traffic jams.
“In city and town locations where many properties do not come with off-street parking and for those close to good public transport links, garages can be let out for thousands of pounds each year,” Coleman-Smith continued.
“The development of a number of parking space websites and mobile apps have made generating an income from a garage easier than ever before.
“Alternatively, blocks of garages and garages with parcels of land attached could potentially become development sites subject to the usual planning consents.”
Philip knows the most frustrating aspect of a home improvement job is not knowing anything about it! In the news, Phil is always on the look out for properties that inspire. He’s a fan of modern properties, with a particular soft spot for skyscrapers.