Do you think this house is worth £1m?

[Lolaandbehold]

I know a house is worth what someone is willing to pay but here is one ex local authority house that has just come on the market in an area I am familiar with. 2 bedrooms, 900 square feet of actual living space, (although they're trying to flog it as 1100 or even 1400) which is on a par with the price of LA mansions (in terms of price per square foot) and not hugely far off New York real estate. Seems bonkers. And it hasn't even been renovated!

Admittedly it is a very nice road in a fashionable part of London and the road also has some lovely Victorian double fronted properties which can sell at over £3m. But I doubt any council tenant would be able to buy that house now.

https://www.rightmove.co.uk/properties/151326137#/?channel=RESBUY

The rest of the country aren't "sensible" they just have different house prices, some more expensive than others.

The price reflects the location. This same house would be in all sorts of price ranges in various places across the U.K. No one area is more "sensible" than another, it is just more or less "desirable"

I don't even need to look at the link. No 2 bed semi is worth that amount no matter how good a condition it's in.

I'm guessing it must be because of the area. This would be under £200k where I live

That is a very nice part of London and if you look at houseprices.io, flats on that road have sold for £800k and houses for £2m+. I do think it is overpriced for the work that is needed but as a pp has said, someone will buy it, renovate it and probably still make a profit. I would take my £1m and buy something nicer but further out in Wimbledon / Richmond etc.

@notanotheronenow

well, it would be around £550,000 here.

if we all moved up north house prices would rise there too,

im somewhat tempted as a lot of my extended family family is oop north, but for personal reasons I don't think it would be good for me. I don't really want to move on my own to some random place where I don't know anyone at all, leaving family & friend behind.

ans I sure as hell can't afford to move back to London.

Admittedly it is a very nice road in a fashionable part of London and the road also has some lovely Victorian double fronted properties which can sell at over £3m.

There's your answer. Easily rentable, probably won't depreciate in value, maybe could be extended. Could definitely do the loft conversion to make it a real 3 bed with 2 bathrooms.
Maybe split into 2 flats.

Bargain . Someone will completely refurbish and make a huge profit.

People pay £1mil to live in dull as ditchwater suburbs.

To be so close to central London with a garden is well worth it imo.

Yep!

Same here thank God.

I feel so sorry for ordinary people - i.e. not uber wealthy - who have to deal with London costs for housing. ☹️

You say all this OP, but that house in Band E!
My 4 bed semi with garage, front + back gardens and parking space for 2 cars (30 mins drive from Manchester) is only Band D.

They haven't just plucked that figure out of thin air. No matter how ridiculous you think it is.

That area 'between the commons' and off Northcote Road is v desirable. You have good transport links, lots of access to green spaces and nice cafes and shops. I dont think it is particularly overpriced, I expect it will go for around 900k. I live in a less central area of SW London and I think it would be about 700k where I am.

Yeh, way overpriced. I live a few miles from there and it's a ridiculous asking price.

Wow, that must be an amazing location!

I mean, obviously that price seems entirely mental to someone who isn't local (including me), but looking at sold prices in the surrounding streets gives you the context you need. They're clearly ascribing a fair amount of value to it being (1) a house (2) a semi as opposed to terraced (3) with a garden (4) with potential to extend, in a highly sought-after part of London where all four of those points are a fairly unusual prospect. I imagine it likely will shift, to someone who has money to renovate and extend and probably add an extra £500k onto the value.

Yes also the major part of the value will be the land/size of plot, not the house itself.

You'd struggle to get £200k for that where I like

I love the location but 1 million is ridiculous! You can spend a lot less and get a decent flat in Tooting Bec a 15 min walk away!

I expect whoever buys will extend out the back to give a big ish kitchen dining living space and then also add a dormer loft extension to gain another bedroom and ensuite.

In a similarly desirable area of Bristol the house would probably fetch around £700,000.

SW11.

You're paying for the location not the house.

Put it where I live and it'd go for a quarter of that. Put it where I grew up and it'd be a tenth.

It's not worth it to me, but for the people wanting to live in SW11, that piece of land is.

You can change a house. You can't change where it is.

That's about €1,165k. If I had that cash and wanted to buy a house I could get something larger and nicer in an Irish small town with the €165k and live on the interest from the €1,000,000. I'd even be able to go to London now and then.

The area is nice but not worth that.

You can get a 4 bed house in Furzedown for that

https://www.rightmove.co.uk/properties/150546767#/?channel=RES_BUY

Seems ludicrous, but the end game is always
Location. Location. Location.
This little ditty has never changed.

People pay stupid money to be stabbed in SW11*

Is it more that the house is not so valuable but the land is worth a million?

But it's NOT where you live. A basic understanding of the housing market is that housing prices are dictated by location first and foremost. A broom cupboard in New York could go for more than this 🤷‍♀️