Thoughts from our Property Experts

Is there a premium for a ‘Turn-key’ property?

by Laurence Lai Laurence Lai, author of this post , Wednesday 09 August 2023

Since the start of 2022 and the commencement of the war in Ukraine, the inflation on raw materials has pushed up prices across the board, and within the sphere of property this initially caused a sudden scarcity in the availability of certain building materials. Whilst access and availability has now returned to relatively normal levels, the knock-on effect is cost - in some instances as much as a 40% increase. When combined with interest rate rises, the prospect of buying a “doer-upper” had become both a cost and risk deterrent for a not insignificant proportion of the buyer pool. For both buyers requiring finance and those in a cash position, the option of a fully renovated ‘turn-key’ property is an increasingly attractive proposition, despite the inevitable premium on the price tag. This, in part, has been a factor in the relative buoyancy of values in South Kensington and the surrounding area.

Henry Synge, Property Expert, South Kensington.