According to independent property buying agency Black Brick houses are priced up to £2,000 per square foot lower than new build flats on the same street in some popular location in the prime central London market.
Managing partner Camilla Dell said that the firm has seen a valuation disparity between houses and new build flats in a number of areas.
For example, a £10.75 million freehold house in Belgravia covering 5,500 square feet with large entertaining spaces and was acquired for an international client at £1,900 per square foot.
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 square foot.
In Kensington a house on Earl’s Terrace was bought for £2,000 per square foot compared to a new development across the road in Holland Green where prices range from £2,500 to over £4,500 per square foot.
Dell explained that 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,’ she said.
‘While accepting that underground parking and on site concierge services clearly warrants a premium, we believe the disparity in price per square foot has now gone too far,’ Dell pointed out.
‘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,’ she added.
Black Brick is an independent property buying agency founded by Camilla Dell in January 2007, covering London and the Home Counties of Kent, Surrey and Sussex and acting for buyers with budgets of £500,000 plus and is based in Mayfair.
Some 75% of its buyers are international, and include Middle Eastern, Asian, African, Indian, Russian and Europeans.
