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Buying a house vs cost of a parking space

Average house prices fell 3.5 percent over the last year, and now stand at £163,049. To give you a measure of how much that is, research shows that you'd need to pay 25 percent more to buy an average parking space in central London.

The real story behind this is the disparity between house prices in the capital and the rest of the country. An influx of wealthy foreign real estate buyers have meant that property prices in London continue to surge. As such, car parking spaces are going for a quite unbelievably high premium.

Daniel Wiggin of estate agents W A Ellis, said: 'Underground car parking spaces of approximately 19 ft x 8ft, in the recognised Knightsbridge blocks are often sold for prices in excess of the national average house price.

'Good spaces can achieve such high premiums purely because of their location and their rarity. Secure, underground parking in Knightsbridge is very highly sought after and so people are willing to pay to guarantee spaces.'

Halifax economist Martin Ellis said this about the current state of the housing market: 'The market is likely to continue to face significant headwinds which are expected to constrain housing demand.  Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances.'

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