According to a study conducted by ING Direct, in some parts of London, a car parking space can cost more than the price of a house in some Cities in the North of England.
The research conducted by the mortgage provider, based on 250 interviews, found that a car parking space in Chelsea or Kensington, two of the most prestigious areas in London, was worth around ten per cent of the total value of a house. The average value of a house in those areas is currently £958,000, resulting in a parking space to be worth around £95,000. Furthermore, renting out a parking space for commercial use in a sought after area in London, could bring a nice extra revenue for the owners.
Speaking of the findings, Julian Hartley, ING Direct Mortgage Director, stated: “In central London locations, where you’ll find some of the most expensive properties in the world, a parking space will bring with it a hefty price tag.”
The news comes after house prices in the area rose by 0.3 per cent, whilst the majority of the UK’s house prices fell by around 7.0 per cent. The average house price in Middlesbrough, a Northern City is around £82,000, which is £13,000 less than the cost of a London car parking space. Having a car parking space is seen as a necessity, as Mr Hartley expressed: “For most Britons, a parking space is a must for their ideal home, which is why so many of us are willing to pay for the privilege.” So if the owner of the property, does not own a car, they could rent out the car parking space for commercial use.
However, the research only highlights the ever growing north south divide. Investors have always had a keen interest in the London property market, but recently they have been urged to invest in the ever growing London commercial property market, as Iain Smith, a spokesman for the London Chamber of Commerce (LCC), expressed: “You have a time zone which allows you to trade with east and west, you have the English language, which is the lingua franca of business in the world, you have great public infrastructure, and a great transport system that allows you to conduct your business easily on a day-to-day basis.”
So, with the price of parking in central London being out of reach for most employees in offices and commercial properties, is commuting from further afield the only option?
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