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Flats snapped up as agents use 'sensible pricing' policy
Ruth Bloomfield23 Apr 2009
Almost three-quarters of the properties in a major new private development in north London have been snapped up within three weeks.
The apartments have been converted from the Hornsey Road Baths, a landmark former Victorian wash house, with 29 out of 40 being reserved since going on sale at the start of the month.Ten flats were sold on the launch evening alone.
Estate agents Savills put the success of the scheme down to "sensible pricing" - the flats started at £175,000 for a one-bedroom apartment, going up to £450,000 for a three-bedroom property.
Ed Lewis, head of London new homes for Savills, said: "People can judge for themselves whether this represents green shoots but the reality is this is the most successful new homes launch we have had for a couple of years."
Mr Lewis said 90 per cent of the buyers were owner-occupiers, with 70 per cent having their purchases funded by parents who felt their money was safer in property than other investments.
The news is further evidence of a tentative recovery taking place within the housing market. The latest monthly survey by the Royal Institution of Chartered Surveyors found both buyer interest and sales had increased last month, albeit from historically low levels.
Meanwhile, Nationwide reported property price increases last month, the first rise since October 2007. The number of mortgage approvals is also increasing.The former Hornsey Road Baths was built in 1895 and boasted four swimming pools, 125 slipper baths, a public wash-house and a laundry. It was closed nearly 100 years later due to a lack of funding and lay disused until it was acquired by developer Grainger Plc.
Last week the Standard reported how a one-bedroom flat in Woolwich was on the market for £63,000.
It was the cheapest seen in London in a report by property website Rightmove. Homes were on sale for less than £100,000 in three-quarters of boroughs. There were just eight where house-hunters would need to spend more than that: Westminster, Hammersmith and Fulham, Camden, Islington, Tower Hamlets, Wandsworth, Brent and Harrow.
Homes were on sale for less than £70,000 in Lewisham, Bexley and Barnet, and less than £80,000 in Merton, Newham, Barking and Dagenham, Croydon and Southwark.
The Rightmove study excluded shared-ownership schemes, "offers over" properties and retirement properties.
Reader views (5)
"Sensibly priced" at 175K for a one bedroom and 450K for a three bedroom flat? Thought it must be in Mayfair but see that it's for converted municipal baths in North London! Come to Queensland's sunny Gold Coast where that sort of money will get you an ocean-view two bedroom apartment (175K Aus Dollar equivalent) or a huge luxury penthouse ( for the 450K Aus equivalent), Including of course pool, parking etc.
- John, Brisbane, Brisbane, Australia, 25/04/2009 07:25
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The UK property lemmins will neve learn. People! The World is in the toilet due to property and mortgages. Wake up for heavens sake. 175,000 for a 1-bed flat is silly. Mummy and Daddy should get real.
- Fred, London, 24/04/2009 05:45
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Well, having seen the Budget yesterday, the last thing I would do is buy property in the UK. Unemployment will be massive, way above the fool Darling's predictions, and taxes and interest rates are heading towards the sky.
Still, I hope as many people as possible go out and spend money now on property. There will be a lot less money and competition around in a couple of years when I buy, at the bottom of the market. These people are going to lose tens of thousands and forget about a bounce. Unemployment and the general sick state of this once great country is here to stay for years.
There'll be no upturn in the UK's property market for donkeys years.
The British are their own worse enemy.
- Np, Cornwall, UK, 23/04/2009 17:03
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Must be nice to have Mummy and Daddy buy you places.
- Not Bitter, London, 23/04/2009 16:22
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The parents that are reportedly funding 70% of these purchases might be earning nothing on their cash, but surely that is preferable to spending it on an flat which, along with the rest of the property market, still has a very long way to fall to reach 3 times average earnings.
Unless you believe that inflation is about to take off and this is just a "flight to assets" and any assets are better that cash, then buying property now is just plain stupid.
- Roger, London, 23/04/2009 14:21
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