Price of one bedroom flat hits a record £3 million

A one-bedroom flat is on the market for more than £3 million.

The home in London's Belgravia is the most expensive one-bedroom flat ever to go on sale in the capital.

The offer comes amid growing concern that London's property boom shows no signs of ending - despite rising interest rates.

Experts believe London has effectively become "detached" from the rest of Britain's housing market because of the influx of foreign capital and massive City bonuses.

The Eaton Place home, which at 1,400 square feet has the floor area of an average four-bedroom flat elsewhere, has a 125-year lease.

The property has a large drawing room, a bedroom with an en suite bathroom, a separate lavatory and a goodsized kitchen.

The property is one of dozens of onebedroom flats on sale at more than £1 million - a graphic illustration of London's soaring property prices.

Latest figures show that the London property market went up in value by an average 2.3 per cent last month alone. That rise took prices in the capital up 15.6 per cent year-on-year.

Interest rates have already risen to 5.5 per cent in an attempt to cool the market and are thought likely to go up again to 5.75 per cent within months.

Ian Springett, of Primelocation.com, said: "Our evidence is that prime central London prices are still rising.

"Most of the money at this level is from overseas, with buyers determined to secure a central London address at any cost."

Eaton Place, in Belgravia, is home to City bankers, retired ambassadors and a range of famous faces. Elizabeth Hurley owns a £5 million house in the street and David Blunkett's home is within walking distance.

Roman Abramovich, Roger Moore and the Duke of Westminster are also neighbours.

Although the £3 million flat may only have a single bedroom, the property cannot be described as cramped.

At more than 1,200 sq ft, it is the size of a typical four-bedroom flat in a London suburb. It has a large drawing room, the bedroom with ensuite bathroom, a separate lavatory, and a good-sized kitchen.

Ed Mead of Douglas & Gordon said: "Around five per cent of buyers looking for homes at over £3 million want a one-bedroom flat. They are products of the rise of indulgent classes who are happy to spend money on themselves and yet be assured of buying a sound investment."

Liam Bailey, head of research at Knight Frank, said: "We should not think of £3 million for a one-bedroom flat as being overpriced or extortionate. Pricing for the best properties in London has become detached from the rest of the UK market.

"London's position as the leading global city means that domestic and international demand will push prices higher and higher.

"If London wants the benefits and opportunities that stem from being a global city, we will have to get used to these prices."

Alex Stroud of Savills, said: "Personally, I would rather buy a wonderful one-bedroom flat than a mediocre two-bedroom flat of the same size. After all, who wants guests to stay?"