Parking spaces add up to 13% to the cost of new properties

by Jason McClean

17:03 PM, 26th January 2016
About 3 years ago

Parking spaces add up to 13% to the cost of new properties

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Parking spaces add up to 13% to the cost of new properties

parkingLess than a fifth of new build properties in London include a parking space in the purchase price, compared to 67% for other major cities, according to new research.

A parking space with a new home in London can add up to 13% on the price of the property, making them unaffordable for many.

Restrictions from developers often mean only those purchasing two or more bedroom properties have the option of buying a parking space.

It is suggested that developers are charging an average of 5% of a new property’s purchase price for an accompanying parking space.

Researchers found that parking spaces were only available and included in the purchase price of a new property 18% of the time in London, while this figure was 67% of the time in other major cities including Bristol, Leeds and Glasgow.

There are also cases where developers were found to impose controls within new build developments, only allowing buyers of large or expensive properties to purchase a parking bay.

A spokesperson for Discount Landlord said: “Landlords who have properties with parking spaces should be pleased at what this research has found as it is clear that parking spaces are very valuable.”

“It is potentially something that landlords can benefit from by charging higher rents to tenants that have vehicles or even renting out their driveways and spaces to other motorists as limited access to affordable and safe parking in many cities becomes a serious issue.”

Some developers offer annual permits to rent out parking bays where parking spaces cannot be purchased. For example, spaces in Brixton were available for just £10 a year when accompanying new build apartments costing £577,000.

On the other hand, a parking permit in Bristol was available for £1,400 a year when accompanying a £425,000 property.

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Comments

Helen Morley

19:11 PM, 31st January 2016
About 3 years ago

In many new developments in Tower Hamlets, not only are there limited parking spaces (if any) but the purchaser ( and presumably therefore any future tenant) is specifically excluded from eligibility for a resident's parking permit.


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