As prices for properties continue to go up across the UK, queues of people camped out in west London overnight, hoping for a chance to purchase a £199,000 studio flat in a new development in the former American Airlines headquarters.
Galliard, the company behind the development, have managed to make use of new government rules regarding the repurposing of office blocks for residential use to avoid the need to fulfil a quota of social housing as part of the project. Despite this though, the cost of the flats in the building are well within the realm of affordability, at least in terms of average costs for flats elsewhere in London.
Over 40% of the flats available are on sale for less than £250,000 ñ significantly below the average London flat price of £459,000, according to Rightmove. The building comprises 228 flats in total, with 300 square ft studio suites on sale for £199,000, and a range of one bedroom apartments available for just over £350,000.
The flats, which will be ready for residents to move in in late 2017, have been heavily publicised in local press publications and have been up for sale on a first come first serve basis. As such people had been queuing up for longer than 24 hours for a chance to purchase one of the flats, hoping either for an affordable home or for a profitable investment opportunity. Many were excited by the prospect of resale values of properties in the area that, they were told, could “soar by up to 14% in 10 months”.
Hopeful buyers braved the rain, some sheltered by umbrellas provided by Galliard staff, during Wedesday afternoon, hoping to be lucky enough to get hold of one of the flats. One woman who was there said that she ‘d been to similar opening in Hayes, of a building also developed by Galliard and that despite arriving “two hours after the doors opened”, that by that point “75% of the flats were already sold.” Demand is clearly high for this kind of property at the moment, and David Galman, director of sales for the project, said that he believed at least 100 of the flats would be sold by the end of play on Thursday.
Property prices have been going up at a rate of knots throughout the UK recently and while the latest figures suggest that areas just outside of London are seeing faster price growth than inside, London property prices are still comparatively sky high.
Prices have been dropping for properties at the top end of the market in London following last year ‘s Stamp Duty changes, and this has had a significant effect on average price growth in the Capital, but with the rate at which house prices are going up across the board, a studio flat for under £200,000 is a pretty good deal.