- Parking space on sale with a new build property in London for £65,000 – an additional 13 per cent on the purchase price
- Less than a fifth of new build properties in London include a parking space in the purchase price, compared to 67 per cent for other major cities
- Restrictions from developers often mean only those purchasing two or more bedroom properties even have the option of buying a parking space
New research from Direct Line's SELECT Premier Insurance reveals developers are charging an average of five per cent1 of a new property's purchase price for an accompanying parking space2. A parking bay to accompany a new build property in London's Battersea was being sold for £65,000, a staggering 13 per cent of the property's £500,000 listed purchase price.
In London, researchers found parking spaces were only available and included in the purchase price of a new property 18 per cent of time. In major cities outside London including Leeds, Glasgow and Bristol, parking spaces were included in the purchase price of a new property 67 per cent of the time.
Restrictions on building parking spaces for new properties mean they have become a desirable commodity. In many cases, developers were found to impose controls even within new build developments, only allowing buyers of large or expensive properties to purchase a parking bay. A new wharf development in Hammersmith for example, only allows parking spaces to be purchased for properties valued at over £1.5 million, while developers in areas of London such as Stratford, Ealing, Greenwich, Elephant & Castle and Wembley Park are restricting spaces in new developments to those buying a property with at least two bedrooms. The same practice is also applied in cities such as Leeds and Nottingham.
Where parking spaces cannot be purchased, some developers offer annual permits to rent out parking bays. Spaces in Brixton accompanying new build apartments costing £577,000 were available for just £104 a year, whereas in Bristol, a parking permit to accompany a £425,000 property was available for £1,400. There are huge variations even within cities, in Brighton's Marina Village a permit for a £775,000 property clocked in at £250 while elsewhere in the City a space accompanying a £410,000 apartment costs £1,000 a year.
Nick Brabham, head of SELECT Premier Insurance, says: "Restrictions on the number of parking spaces developers can build to accompany new properties make these slots a hot commodity carrying a premium price point. In many new developments, those purchasing studios or one-bedroom homes are denied the opportunity to purchase a space, as they are reserved for larger properties. As larger scale residential developments are built in urban city centres, traffic volumes will become an increasing issue and planners may restrict the construction of new parking bays even further, making it very difficult for homeowners with vehicles.
"Access to secure parking can sometimes impact on insurance premiums for a vehicle, so people will need to weigh up the potential long term cost savings of purchasing a space carefully. The limited access to affordable parking spaces in many cities is becoming a serious issue, which is why we are seeing a growth in people renting out their driveways and spaces to other motorists."
Five of the most expensive parking spaces in London to accompany new build properties (as a percentage of the purchase price):
| Area | Property list price | Parking space list price | Parking space cost as a percentage of property price |
|---|---|---|---|
| Lambeth | £500,000 | £65,000 | 13% |
| Chelsea | £849,950 | £75,000 | 8.8% |
| Vauxhall | £595,000 | £50,000 | 8.4% |
| Greenwich | £412,000 | £30,000 | 7.3% |
| Bow Creek | £470,000 | £30,000 | 6.4% |
Source: Direct Line's SELECT Premier Insurance
Five of the most expensive parking spaces outside London to accompany new build properties (as a percentage of the purchase price):
| Area | Property list price | Parking space list price | Parking space cost as a percentage of property price |
|---|---|---|---|
| Leeds | £99,995 | £12,500 | 12.5% |
| Manchester | £84,950 | £10,000 | 11.8% |
| Manchester | £97,500 | £10,000 | 10.3% |
| Brighton | £215,000 | £20,000 | 9.3% |
| Nottingham | £165,000 | £15,000 | 9.1% |
Source: Direct Line's SELECT Premier Insurance
Notes to editors
1 Researchers analysed the availability and expense of purchasing a parking space in London across 100 new build property developments in October-November 2015. Researchers also analysed the availability and expense of purchasing a parking space across 130 new build property developments in cities outside London including Leeds, Manchester, Glasgow, Edinburgh, Bristol and Liverpool in October-November 2015. Calculations accurate as per the developers' listed price for the property and space, which may not reflect the final purchase price for the property.
2 Average percentages only relate to when a parking space was identified as available to purchase with a property.
For further information, please contact:
Claire Foster
Direct Line
Email: claire.foster@directlinegroup.co.uk
Mobile:
07525665504
Tel:
020 8285 8682
Antonia Green
Citigate Dewe Rogerson
Email: antonia.green@citigatedr.co.uk
Tel:
020 7282 2967
About SELECT Premier Insurance
Direct Line offers SELECT Premier Insurance to cover homes, cars and valuables of high worth, as well as breakdown cover, pet and travel insurance, all covered under just one policy. When taking out SELECT Premier Insurance, Direct Line will even pay your cancellation charges from your previous policy, making it even easier and affordable to have all your policies under one roof, with one payment plan and one renewal date.
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