Camilla Dell, Managing Partner of Black Brick, comments:
“We have seen a valuation disparity between houses and new-build flats in a number of areas. For example, we recently purchased a £10.75m freehold house in Belgravia for an international client – at 5,500 sq ft, the property boasts large entertaining spaces and we acquired it for an extremely attractive £1,900 per sq ft. By comparison, a number of apartments in a relatively new development just around the corner recently changed hands at prices in excess of £3,800 per sq ft.
We've seen another instance of this in Kensington – a house on Earl's Terrace for £2,000 per sq ft compared to a new development across the road in Holland Green where prices range from £2,500 to over £4,500 per sq ft. This scenario has arisen due to a number of factors, such as overseas buyers' desire for new-build, the demand for on-site concierge services, as well as a widely-held misconception that the majority of London's houses are narrow and offer poor entertaining spaces.
Good value is hard to understand let alone find in Prime Central London property, but we believe there is a growing opportunity for potential buyers to purchase in some of the capital's freehold houses – a number of which have been left significantly behind in price terms when compared to flats.
While accepting that underground parking and on-site concierge services clearly warrants a premium, we believe the disparity in price per sq ft has now gone too far. For many of our clients, lateral apartments are likely to remain the focus of attention, but with the additional costs of service charges that can run as high as £30,000 or more a year, and high quality independent concierge services available across London, we believe that potential buyers should not dismiss the capital's housing stock quickly.”
