The future of London’s housing may be taking a novel turn as a distinctive property is set to go up for auction this month in Battersea, located in south-west London. The airspace above 47 Northcote Road will be available for purchase with a guide price of £10,000. Despite the absence of planning permission for construction, auctioneer Phillip Arnold is optimistic that the plot could fetch an even higher price.

The potential of the airspace is emphasised in the sale listing, indicating that the freeholder will grant consent for development on the roof of the flat below. Mr. Arnold noted that neighbouring properties are also undergoing redevelopment, with similar projects being approved for additional storeys.

The location of the plot, within walking distance of Clapham Junction railway station, only adds to its appeal. Positioned above two self-contained flats and a ground floor restaurant being transformed into a café, the airspace is offered with vacant possession. The auctioneer’s website also indicates that a new 150-year lease with a peppercorn ground rent will be granted upon completion.

Despite the unconventional nature of the auction, the allure of the property lies in its potential as a more affordable means for individuals to invest in the sought-after neighbourhood of Battersea. The average price for a flat in the area currently stands at more than £600,000, making the opportunity to acquire airspace at a seemingly nominal cost quite attractive.

Auctioneer Phillip Arnold, drawing from his experience in the industry, emphasises the investment potential of the property. While acknowledging that the project may involve complexities and additional costs, he points out the low initial cost of the airspace and its “hope value”. As property prices and rents continue to rise, such unique investment opportunities are likely to gain traction in the market.

Property writer Anne Ashworth sheds light on the concept of selling airspace, noting that this trend was prominent in locations like New York a decade ago. She has observed similar developments in parts of central London and argues that it might be a response to the severe shortage of new homes in the city.

The auction, taking place online on 7th December, marks an interesting shift in the real estate market. With the potential for more airspace auctions in the future, it seems that the concept of looking to the sky for housing solutions is becoming more prevalent.

As the housing landscape in London continues to evolve, individuals renting top-floor flats may need to consider the possibility of such airspace developments affecting their living arrangements. The sale of rights to the roof by freeholders could lead to unexpected changes for such residents.

The auction of airspace above a residential building illustrates a unique opportunity for property investment in London. It reflects the changing dynamics of the housing market, as innovative solutions are sought to address the challenges of housing shortages and soaring property prices. As the auction unfolds, it will certainly be intriguing to see how the sale of this “thin air” above Battersea plays out.