Cost of a London parking space accelerates despite ULEZ introduction

The latest research by London lettings and sales agent, Benham and Reeves, has looked at the increasing cost of securing a parking space purchase in the capital, despite the Government war on emissions and the introduction of the Ultra-Low Emissions Zone in April of this year.

Benham and Reeves looked at the average cost of a parking space across all London boroughs and found that so far in 2019, Londoners are forking out an average of £252,320 for the privilege of parking. That’s a 22% increase on the average price of £206,658 paid over 2018.

Is the ULEZ pushing up parking prices?

The number of parking spaces sold across London since the introduction of the ULEZ restrictions has dropped -21% when compared to the same time period leading up to its launch, however, despite this reduction prices have increased notably.

Since the implementation of the ULEZ, the average price being paid for a parking space in London has hit £392,408, much higher than the average price paid of £120,540 during the same time frame prior to the start of the scheme.

When looking at costs in and out of the ULEZ, it’s a similar story.

A parking space outside of the ULEZ continues to be hot property and the scheme has only seen parking within a short commute to the city centre grow in value.

Leading up to the introduction of the ULEZ the average cost of parking spaces in areas outside of the zone cost £124,244. Fast forward from its introduction in April until today and while the number of parking spaces being sold has dropped by -22%, the average price paid for a parking space has already increased by a huge 47% to £183,036.

When looking inside the ULEZ, it very much becomes a case of quality over quantity, as is often the case with London’s prime and central areas. Parking space transactions have remained largely unchanged pre and post ULEZ introduction, however, the average price paid since the scheme came into place is a whopping £2,442,722.

This has been driven by just a few million-pound parking place sales, as London’s top-end buyers remain unphased by the seemingly insignificant daily charges when completing their multi-million-pound property purchases.

Director of Benham and Reeves, Marc von Grundherr, commented:

“Despite the Government’s best efforts to rid London’s air of exhaust fumes, the capital’s homebuyers still value four wheels and somewhere to keep them. So much so that some eye-watering sums are regularly exchanged for the convenience of a parking spot.

However, with these additional costs soon expanding to the North and South Circulars and the cost of parking continuing to climb, it seems that a car parking spot within central London may soon become the preserve of the mega-rich, who will pay out millions of pounds purely for the privilege, and won’t bat an eye-lid at the daily tariffs of the ULEZ.”

Overall – London
 
Time Period
Average price paid for a parking place
Change (%)
Number of spaces sold
Change (%)
2018
£206,658
22.1%
338
-62.4%
2019 (latest data Jan-Aug 2019)
£252,320
127
Pre ULEZ – 5 months before
£120,540
225.5%
86
-20.9%
Post ULEZ – 5 months after
£392,408
68
Transactions inside the ULEZ
 
Time Period
Average price paid for a parking place
Change (%)
Number of spaces sold
Change (%)
Pre ULEZ – 5 months before
£86,244
2732.3%
7
-14.3%
Post ULEZ – 5 months after
£2,442,722
6
Transactions outside the ULEZ
 
Time Period
Average price paid for a parking place
Change (%)
Number of spaces sold
Change (%)
Pre ULEZ – 5 months before
£124,244
47.3%
79
-21.5%
Post ULEZ – 5 months after
£183,036
62
*The most current data for 2019 runs until August 2019, therefore 5 months’ worth of data was available since the ULEZ launched. As a result, we compared it with the same time frame prior to the launch of the scheme. These comparisons are from November 2018 to April 2019, and from April 2019 to August 2019.
Data sourced from the Land Registry Price Paid Transaction files. Only the purchase of individual parking spaces were included, not the purchase of whole car parks or similar.

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Breaking Property News – 28/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   tlyfe the tenant App gets huge marketing boost from national team tour from the Openbrix team As many will know tlyfe, powered by OpenBrix, is the UK’s most innovative tenant lifecycle app, taking the stress out of the move in process and helping to…
Read More
Breaking News

Over Four Out Of Five Tenants Unaware Of The Renters Reform Bill

OVER four out of five tenants remain unaware of the Renters (Reform) Bill and its contents, according to new research. The data comes from a representative survey of over 2,000 private renters conducted by the TDS Charitable Foundation, which works to advance education about housing rights and obligations in the private rented sector. The Bill…
Read More
Estate Agent Talk

What is Property Damage in a Personal Injury Case?

Property damage refers to any damage that affects things instead of a person. This might include damage to your car, house, etc. As such, it is not regarded as a personal injury case. However, when an individual is injured when the accident occurs, the affected person can file a personal injury claim. A typical example…
Read More
Love or Hate Rightmove
Breaking News

Rightmove comment on new 99% first-time buyer mortgage product

Matt Smith, Rightmove’s mortgage expert said: “It’s encouraging to see lenders continuing to try to innovate in the mortgage market, even after the government abandoned its own plans to encourage lower deposit mortgages in the Spring Budget. This new product has the potential to help some first-time buyers who fit the affordability criteria, but are struggling…
Read More
Breaking News

Breaking Property News – 27/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Coadjute ahead of the game as they are already licensed to provide digital TA6 Forms to property stakeholders This week, the Law Society announced its TA6 Form will now include Material Information as per the the National Trading Standards Estate and Letting Agency Team…
Read More
Breaking News

Breaking Property News – 26/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Sharing Success: The Guild Conference and Awards celebrate Member achievements The QEII Centre in Westminster, London, was abuzz with excitement on Friday, 22 March 2024, as The Guild of Property Professionals hosted its highly anticipated annual Guild Conference and Awards. Under the theme ‘Sharing…
Read More