We may have heard a lot about it recently, but the results of an auction this month suggest rumours of the demise of London house prices may be greatly exaggerated, after a flat with just 18 years left on its lease sold for £100,000 more than its asking price.
The two-bedroom ex-local authority flat in Wembley, which was listed with a guide price of £40,000, sold for £140,000 at an auction in London earlier this month, despite needing refurbishing.
However, Auction House, the auctioneer, said the freeholder had "been approached" about an extension to the flat's lease, which drove up the price.
The flat in Wembley wasn't the only eyebrow-raising sale at the event: a tiny flat in Clapton, put up for sale with a guide price of £65,000, went under the hammer for £103,500 after potential buyers realised they could command a rent of £800 per month - despite the fact it is only 10 sq m.
The news is in sharp context to figures published overnight by Rightmove, which showed the average price of London property has fallen nearly £10,000 since this time last year, with properties in the capital coming to market 1.5 per cent cheaper than a year ago.
Back in March, a tiny house in Chelsea sold for £100,000 above asking price, despite needing full renovation.