A lock-up has been sold for nearly £500,000 as investors and homeowners look for new ways to make money out of London’s property market.
With prices in the capital up by almost 15 per cent over the past year, it is getting more difficult to find a bargain.
So when a 15ft-wide site in Hammersmith came up for auction with a guide price of £250,000, there was no shortage of interest because of its development potential.
A bidding battle at the Savills auction resulted in it selling for £466,000, with stamp duty taking the final price to nearer £500,000.
This is almost two-and-a-half times the price of the average home in England and Wales.
But the new buyer has the bonus of knowing the 570 sq/ft site comes with planning permission for it to be converted into an 800 sq/ft, two-storey home.
They now have the job of transforming the site into a new home while still making a profit.
A two-bedroom property in the area is likely to be worth between £1 million to £1.2 million.
Chris Coleman-Smith, director of Savills Auctions, said: “There were six people bidding on it. Hammersmith and Fulham are very popular areas and it had planning permission.
“At the end of the day it was an auction so the room decides the value.
“If it has been bought by a developer then they will look to make a profit and it is a self-builder they will have a home for under the market price.
“If you carry out the scheme you will have a very nice home at the end of the day – and it is opposite a Waitrose.”