We recently published a post examining what the average UK house price of £250,000 could be used to purchase in different parts of the country. With average property prices now exceeding £645,000, key London locations are largely out of reach for most movers and investors.
But there will always be the occasional exception to the role, as illustrated in a recent (and somewhat controversial) listing by Knight Frank estate agents.
Typically, you may find it impossible to believe that a flat in London overlooking Hyde Park would be available for just £150,000. You would understandably expect there to be plenty of strings attached, and you would be right.
What is £150,000 worth in Knightsbridge?
Home of the wealthy and super wealthy alike, Knightsbridge is not the kind of place you can usually buy into for just £150,000. This unusual exception listed by Knight Frank boasts one of the most prestigious postcodes in the entire country, with one major caveat:
It is listed as a “zero bedroom” flat.
Roughly translated, the flat in question measures just eight square metres in total and therefore does not qualify as having a bedroom. Interestingly, developers are prohibited under strict regulations from building any properties less than 37 square metres in size.
The Knightsbridge flat is therefore more than four times smaller than what is considered permissible by regulators as a dwelling to occupy for residential purposes.
Nevertheless, the flat is described by Knight Frank as a “blank canvas” for the lucky investor to do whatever they want with.
Causes for concern?
Approached to comment, a representative speaking on behalf of Knight Frank remained adamant that the tiny flat would make a good investment and has a great deal of potential.
“The minimum space standards are only relevant to planning permissions in London for new-build residential developments and converted properties constructed after 2011,” said the representative.
“The property at Princess Court on Brompton Road was originally leased in 1976 and has been used as residential accommodation prior to the minimum space standards coming into effect. Knight Frank can confirm that the property complies with all relevant regulations.”
However, others from within the industry and elsewhere expressed concern regarding the extent to which elevated prices are being charged for dwellings with no immediate practical value.
Labour’s Shadow Housing Secretary, Thangam Debbonaire, said that the Knight Frank listing does nothing but illustrate the wider issues with the local and national housing markets.
This outrageous advertisement is evidence of a broken housing market and shows why we need more truly affordable homes,” Elizabeth said.