Most Expensive Garage in Britain Sold for £550,000

Former coach house in south London auctioned off for almost triple its guide price

The £550,000 south London garage does not have planning permission to turn it into a home. Photograph: National Pictures / Hannah McKay

A garage in south London has become the most expensive ever sold in Britain, going for £550,000 at auction.

The 568 sq ft former coach house, which was used as a garage by the mayor of Southwark, went for almost triple its guide price, despite not having planning permission to turn it into a home.

The price paid for the "empty shell" by an anonymous buyer beat the previous record, held by a garage under the shadow of Harrods in Knightsbridge, west London, by £25,000.

Homes in terraced streets nearby in the "up and coming" Camberwell area of the capital usually sell for between £500,000 and £600,000. The double height brick building, which has vaulted ceilings, roller steel door and cobbled drive, was given an estimate of £200,000 by auctioneers Andrew Scott Robertson.

Its sale at a much higher price surprised auctioneer Jeremy Lamb, who said: "It's in a reasonable state, but there are quite a few cracks in the walls.

"We had about six or seven bidders at the auction – a mixture of residential developers, investors, potential occupiers and artists. However, the number of bidders quickly dropped as the price went up."

Lamb put down the high price to London's housing crisis - with demand for properties far outstripping supply.