Can car parking spaces really cost more than a house?

A recent article published by The Telegraph, stated that a parking space in central London can cost more than a house in Middlesbrough. This is interesting news for anyone looking into car park investment as it helps to highlight the strength of this unique, commercial asset.

Referring to stats compiled by the mortgage company ING Direct, the newspaper stated that a parking space in the west London borough of Kensington and Chelsea can cost up to £95,800.

Comparing the cost of this parking space to the average property price in the north-eastern town of Middlesbrough where the average property will set you back £82,300, the research highlighted the ever-growing cost of parking in the capital.

Based on a poll of 250 property surveyors, ING Direct estimated that off-street parking adds around 10% to the value of a property. On the basis that the average cost of a property in Kensington and Chelsea costs about £958,000, the value of a car park space in this location is £95,800.

Speaking about the company’s findings, Julian Hartley, mortgage director at ING Direct stated, “In central London locations, where you’ll find some of the most expensive properties in the world, a parking space will bring with it a hefty price-tag.”

Despite the global economic recession, the price of property in London has risen by 0.3% in 2011. According to Hartley, for most Britons a car park space is a ‘must’ when searching for a property.

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