A 7 square meter micro apartment, crammed into a bed, toilet, shower, sink and microwave hidden under the pillow, sold for 80% above its minimum listing price of 90,000 £.
The microflat, located in a Victorian conversion in Lower Clapton, east London, is considered the smallest property in the capital, marking a shift towards small houses due to the UK housing crisis with the soaring rents and real estate prices.
The flat had a minimum auction price of £50,000, but sold 80% higher at £90,000. After enrolling, he was describe on social networks as a “chic cell”.
It was bought for £103,500 in May 2017. But the owner has already recouped his investment by receiving £800 per month rent.
Micro-ownership epitomizes the growing trend for smaller homes, experts told the Guardian this week, as soaring rents and property prices accelerate demand for micro-apartments.
Asking prices for homes joining the UK market rose by a record 2.3% in February, according to property website Rightmove, and the Office for National Statistics found that the average cost of renting for tenants Britons had risen 2% in 2021 – the biggest annual jump in five years.
The Clapton apartment, which has a large window, has been recently refurbished. To maximize space, it has a captain’s bed above storage, cupboards and a microwave. The space between the bed and the wall is just about wide enough to stretch out your arms, and there’s a folding table for eating or working. A toilet and shower are in a separate wet room.
The current tenant of the property lives elsewhere most of the time and only spends one or two nights a week in the apartment, for work.
TV presenter Kirstie Allsopp recently caused anger by suggesting young people could afford to buy houses if they spent less on gyms, easyJet flights, coffee and Netflix. Critics responded that, when Allsopp bought his first flat, the average house cost £50,000 and was 73.4m² – 10 times bigger than Clapton’s flat.
Stuart Collar-Brown, the manager of My Auction, which sells the apartment, said that although it is the cheapest apartment with a long lease on the market within 10 miles, it is expected it to be bought by an investor rather than a first-time buyer, as the big banks don’t lend on properties under 30m².
With estimated rental income of around £10,000, investors could likely recoup the £50,000 outlay within five years, Collar-Brown said.
Suitable renters wouldn’t spend much time at home and would be those who were tired of sharing their home but couldn’t afford more space, or who lived somewhere else and needed a crash pad for work, he added. For example, doctors or nurses working in nearby Homerton Hospital, or city workers, given the area’s good transport links to Liverpool Street.
As a single user job on Twitter: “Forget to swing a cat here”.