London’s smallest property, on Saratoga Road in Hackney, E5, has sold at auction for £90,000 – reflecting a sale price of £1,200 per sq ft.
The 75 sq ft property, which just about has a bed in it, a toilet and no kitchen, was originally put up for sale through online auctioneer My Auction for £50,000. Its guide price was increased to £75,000 off the back of high demand for the property.
The first-floor flat has room for a captain’s bed with cupboards and shelves, a microwave underneath and space for a fridge, fold out table, sink and separate private bathroom.
At the sale price of £90,000, the property provides a rental yield of 10% a year. It has 994 years left on its long leasehold.
Stuart Collar-Brown, co-founder and director of My Auction, said: “This property has attracted a significant level of attention, largely from buy-to-let investors who recognised the substantial return potential. The flat might be small, but it is highly functional and with such disparity of good quality stock in the rental market and the number of potential tenants, properties like this don’t hang around for long. For someone in the right position, it also makes a great first home, close to the City and ideal for a commuter or a bolthole for someone who only needs to be in London a couple of days a week.”
He added: “We can never predict how much a property will go for at auction, but we knew this one would attract a lot of attention. Regardless of how the auction winner plans to use it, it is a really sound investment – money in property is always going to be better than money in the bank.”
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