When one becomes two: London's unsold luxury flats are being sliced in half to create smaller, cheaper homes for first-time buyers

Developers are slicing in half their unsold luxe flats with luxury extras, including roof terraces, gyms and concierges, at Help to Buy prices...
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Arabella Youens28 November 2018

With London’s property market saturated with fancy top-end new-build apartments that are often difficult to sell, developers are turning their attention to millennials eager to become first-time buyers.

In some cases this means trimming prices to make flats more attractive to young buyers but at other schemes a more radical approach involves slicing larger, hard-to-sell apartments in two to offer smaller, cheaper flats which nonetheless benefit from the luxury facilities on site.

The move marks a shift in focus for many developers from the luxury end of the market — hit by a shortage of buyers and heavy stamp duty charges — to the first-time buyer sector.

According to London Central Portfolio, an investment firm, new-build starts fell by 25.4 per cent in premium inner London last year compared with 2016. Starts in cheaper outer London, however, rose by 25.8 per cent. “In London the luxury end of the market is saturated,” says chief executive Naomi Heaton. “Developers are realising that they have to make things more affordable.”

One-bedroom flats at The Otto in Hackney start at £490,000, where facilities include concierge and wellness rooms

Rory Cramer of estate agents Marsh & Parsons agrees there is evidence of developers going back into planning to update the mix of homes to deliver the size and scale of units that the market is demanding — that is, more one- and two-bedroom apartments.

This is happening along the South Bank, Nine Elms and around City Road, Shoreditch. “We have also seen developers offering more facilities so their properties align more closely with the prime market offering,” adds Cramer.

Southwark council has just approved plans to reconfigure the layout of Renzo Piano-designed Shard Place, increasing the number of flats in the building by almost 20 per cent. The 26-storey residential tower, set to be completed in 2020, stands next to The Shard, also by the Italian architect, where super-luxe flats remain unsold after five years.

Original planning for Shard Place was for 148 flats. However, through the introduction of one-bedroom flats, many of which are created by splitting duplex homes, the developer has been allowed to increase the number to 176. The changes mean the project will no longer include any four-bedroom homes.

WHERE TO FIND NEW-BUILD LONDON HOMES PRICED BELOW £500,000

All of these homes in Zones 2 and 3 cost less than £500,000 and come with fitness equipment, residents roof terraces, high-end branded kitchens, concierge services and open spaces.

One-bedroom flats from £495,000 at Coda Residences in Battersea. Lifestyle extras include a music room, entertainment suite and residents' lounge

1. Coda Residences

  • At Avanton, Battersea SW11, Zone 2
  • One-bedroom flats: £495,000
  • Lifestyle extras: music room; flexible-use entertainment suite for dinner parties or film screenings; residents' lounge.
  • Anything else? This mixed-use scheme sits alongside the new HQ for the Royal Academy of Dance.
  • Transport: Clapham Junction station.
  • Contact: codalondon.com

2. Java House

  • London City Island, E14, Zones 2 & 3
  • One-bedroom flats: £475,000
  • Lifestyle extras: clubhouse; leisure centre/gym; heated outdoor pool.
  • Anything else? You’re surrounded by landscaped parkland and waterways.
  • Transport: Canning Town Tube and Docklands Light Railway.
  • Contact: jll.co.uk/residential
One-bedroom flats at Bow Garden Square, E3, cost from £425,000 and come with underfloor heating, outside space and SMEG appliances

3. Bow Garden Square

  • 60 Fairfield Road, E3, Zone 2
  • Two-bedroom, split-level flats: £475,000
  • Lifestyle extras: access to a leisure centre with pool and gym; on-site bar and restaurant; 24-hour concierge.
  • Anything else? Each apartment comes with an allocated parking space.
  • Transport: Bow Church DLR and Bow Road Tube.
  • Contact: Fine & Country 

4. Hornsey Park Place

  • Clarendon N8, Zone 3
  • One-bedroom flats: £425,000
  • Lifestyle: gym; pool; crèche; café.
  • Anything else? In a regeneration scheme beside a new Haringey park; four stations within 700 yards.
  • Transport: Wood Green and Turnpike Lane Tube; Hornsey and Alexandra Palace Overground.
  • Contact: clarendonn8.co.uk

5. Liberty at Crossharbour

  • Limehouse E14, Zone 2
  • One-bedroom shared-ownership flats: £184,000 for a 40 per cent share of a £485,000 flat.
  • Lifestyle: concierge; fitness suite.
  • Anything else? All apartments have their own outdoor space.
  • Transport: Crossharbour DLR
  • Contact: Notting Hill Genesis
Flats at New Garden Quarter in Stratford are for sale for £101,875 for a 25 per cent share (full price is £407,500). Lifestyle extras include concierge, gym and a cafe.

6. New Garden Quarter

  • Stratford E15, Zone 2
  • One-bedroom shared-ownership flats: £101,875 for 25 per cent of a £407,500 flat.
  • Lifestyle extras: concierge; gym; café; proposed nursery and play area.
  • Anything else? Landscaped gardens and parkland; commercial space.
  • Contact: Notting Hill Genesis

7. Apt Living

  • Gunnersbury Park TW8, Zone 3
  • One-bedroom flats: £320,000
  • Lifestyle extras: concierge; gym; cinema; residents roof terrace.
  • Anything else? Parking; bike storage.
  • Transport: Kew Bridge station.
  • Contact: Marsh & Parsons

8. The Otto, Hackney

  • Hackney Downs E5, Zone 2
  • One-bedroom flats: £490,000
  • Lifestyle: concierge; wellness rooms; shared terrace; basement storage.
  • Anything else? 174 bike racks and a dedicated cycle entrance.
  • Contact: theotto.co.uk


‘I WANTED TO BE SURE OF HIGH-QUALITY FINISH’

First-time buyer John Liao, a 35-year-old IT manager, has chosen a two-bedroom duplex apartment at Bow Garden Square in E3, where one-bedroom flats cost £425,000. Contact Telford Homes.

First-time buyer: John Liao chose Bow Garden Square in E3

All 83 homes have outside space, underfloor heating and kitchens by east London-based studio Urban Myth with SMEG appliances.

John, who previously shared a rented house in Greenwich, says: “I wanted to make sure that I was getting a high-quality fit and finish.”

Another attraction was the range of transport connections. Mile End is the closest Tube station, and there is bike storage. “It’s convenient, accessible and makes getting across London so easy,” adds John.