Parking: A Critical Issue for New Build Properties

Before you make a decision about buying a flat in a new development, find out about parking. Will your new buy-to-let unit come with a parking space or will you have to pay extra to make sure your tenant has a place to park? That "extra" can be substantial—the average cost for a parking space in a new development in London is £17,000.

Another important related issue is that of visitor parking. The trend among developers in London is to not allocate any parking for visitors, which will create problems for your tenants when they want to have guests.

Parking provisions within new developments are decided by the planning consent given by the local authority. It is a Mayoral policy to discourage car use in London by keeping on-site parking in new developments to a minimum, which is why Councils impose strict limits when they grant planning consent. As an example, consider that Haringey Council recently restricted parking to one space per two-bedroom and above flat and only one-third of a space for each one-bedroom flat.

Keep in mind that two-bedroom rental flats often go to sharers or to couples who will have visitors at times. These tenants could see seriously limited parking as a drawback that other benefits may not overcome. If the property does have severe parking restrictions, you may still want to consider the investment if excellent transport links that are convenient and safe for tenants are nearby.

Before you purchase a flat to let, do your research so that you know what your target tenant is likely to demand and what the property itself is able to deliver. Your solicitor can assist you in this process.

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