Look inside: London’s smallest flat sold at auction for £90,000
London’s smallest flat sold at auction on Wednesday for £90,000, well above the guide price for the 75 sq ft property.
Located on Saratoga Road, Hackney, the property – images of which were shared around Twitter in the days before the auction – sold for 20 per cent over its guide price of £75,000.
The property is described as being newly renovated and is a converted studio on the first floor. It is pictured containing a captains-style bed with cupboards and shelves, a microwave underneath and space for a fridge, fold out table, sink and separate private bathroom.
The auctioneer of the property, My Auction, said it would have been difficult to get a mortgage, causing a high level of interest from buy to let investors.
At the sold price of £90,000, the property would provide a rental yield of 10 per cent a year, My Auction added.
It is not yet known what the winning bidder is intending to do with the property, which comes with a long leasehold of 994 years.
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’s 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.
“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’s a really sound investment – money in property is always going to be better than money in the bank.”