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London's latest hot property - garages, selling for up to £670,000

London has seen a sharp rise in the number of people paying a small fortune for a garage with the average hitting £368,000.

This former garage, located on Fulham Palace Road, sold for almost double its asking price

Savills Auctions has reported a bumper 2016 for clients looking for a lock-up to either park their car in or to use for redevelopment.

The agency, which is better known for selling multi-million pound mansions, had seven separate garages come to auction this year - compared to a total of six single sites in the previous nine years.

This garage in Chelsea sold for £360,000

And the average price paid for a humble lock-up at Savills was a staggering £368,000 - which is 70 per cent more than the cost of the average home in England and Wales.

The most expensive garage was in Chelsea, which sold for £670,000 in what is believed to be a record for a garage in London.

This pair of dilapidated garages went under the hammer for the same price as a Spanish villa with a swimming pool

Chelsea was also the location for a £360,000 garage which doubled its pre-sale reserve while a garage in Stoke Newington sold for £309,000.

Another huge deal was for a garage in Hammersmith, which sold for £466,000 against an estimate of £250,000.

Chris Coleman-Smith, head of auctions at Savills, said:

2016 has been Savills' best year for selling garages. There have been some unique opportunities and people are realising their values.

If you bought a garage ten years ago in central London you are sitting on a goldmine. Some areas have doubled in value in the past five years. Their scarcity value is pushing up prices.

– Chris Coleman-Smith, Savills
This garage had a guide price of £525,000 and went for £670,000

The garage which was sold for a record-breaking £670,000 was opposite Justice Walk on Lawrence Street, in Old Chelsea, where homes are typically worth more than £5 million.

On top of the £670,000 payment, which could buy a luxurious family home in most cities, the buyer had to pay a further £23,500 in stamp duty - enough to buy a brand-new BMW 3-Series.

It is not just Savills Auctions which has selling garages which cost the same as a decent-sized home in some parts of the UK.

Estate agency Foxtons is currently marketing a single garage in Kensington for £200,000.

They have also recently sold a single garage in South Kensington for £200,000 and another in Chelsea for £185,000.

Garages are another type of property that have proved popular with property investors in recent years. Garages offer good potential returns.

In city and town locations where many properties do not come with off-street parking and for those close to good public transport links, garages can be let out for thousands of pounds each year.

The development of a number of parking space websites and mobile apps have made generating an income from a garage easier than ever before.

Alternatively, blocks of garages and garages with parcels of land attached could potentially become development sites subject to the usual planning consents.

– Chris Coleman-Smith, Savills