London flats turned back into mansions

A vogue for joining together expensive properties in some of the UK's most desirable addresses has been gathering momentum as wealthy Londoners and international homeowners rush to create "super prime" family homes.

Planning applications to amalgamate properties into a single dwelling have more than quadrupled in Kensington and Chelsea since 2010. Last year the London borough reported 68 applications for such developments, including proposals to combine flats into family homes to create extra space for gyms, wine cellars and spas as well as more bedrooms and living space.

In a market where supply is limited and where it is increasingly difficult to dig out basements and add extensions, owners are coming up with new ways to increase their property's footprint, said Ollie Hooper, director at Huntly Hooper, which specialises in advising buyers and investors in central London residential property worth more than £2m.

"Buyers in prime central London are adapting to recent changes in planning policies that have started restricting the expansion of space above and below ground," he said.

Kensington and Chelsea council has ruled it will no longer approve basements of more than one storey, for instance. The extent to which underground extensions can stretch beneath the garden has also been reduced, from 85 per cent of the garden area to 50 per cent.

Property experts said the development boom - including rear and side extensions, loft conversions and basements - was partly down to the ever-increasing cost of moving home. In the "super prime" market of homes worth £10m or more, it has also been driven by the lack of larger homes within the most prestigious areas of central London.

Mr Hooper said amalgamating separate flats brought the added bonus of significantly boosting value. At the end of last year, properties worth £10m plus were valued at £2,757 per sq ft, an 89 per cent premium on £2m-plus property, which was valued at £1,455 per sq ft.

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"There is a desire among international buyers for lateral apartments rather than tall and often narrow town houses," he said. "Lateral living is far more common in other key global cities and it is a lifestyle global buyers have come to expect when they are searching for a home."

In Paris, New York, Singapore or Hong Kong, for example, living across one floor is far more common than in the UK. "Period apartments that have been converted to span across two or three buildings are incredibly rare in London, especially on prestigious addresses. So when they do become available, they always attract a premium and high demand from discerning high net worth individuals," said Mr de Keyzer.

Not everyone is so positive about the rise of London's "super homes". Duncan Stott, director of PricedOut, the campaign for affordable housing, said: "There is huge pressure on London's housing stock so we need to make sure existing residential buildings are put to maximum use.

"Allowing dwellings to be merged together will result in fewer people being housed, thereby exacerbating the housing shortage. Councils should do everything in their power to avoid the loss of housing in this way."

Indeed, there are signs councils are beginning to oppose the trend.

Westminster council's recently turned down an application from a member of the Qatari royal family to combine two mansions near Regent's Park into a single home - which at 34,155 sq ft would have been more than 30 times the size of the average UK home. The council cited the shortage of homes in the capital. Kensington and Chelsea council estimates that at least 50 homes are lost in the borough each year to the amalgamation trend.

The move to join together high-end properties in London is a reversal of a late 19th century trend where large houses started being used as flats due to the rapid urbanisation at the time, with more permanent conversions taking place after the second world war.

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