Photo credit: Paul Fosh Auctions
Britain’s cheapest house is up for auction this week. The property, located in the Welsh village of Maerdy, is thought to be the cheapest piece of real estate in Britain. It will be offered to bidders on Thursday with an asking price of just £7,000.
But the low price tag comes with a cost: the house is dilapidated and in serious need of repair. Crumbling walls and ceilings will greet the property’s new owner, in addition to the mouldy front door and boarded up windows. Even the auctioneers have been unable to see inside the house due to safety concerns, so the exact level of property damage is unknown. Some reports also claim that notes are still visible, warning the previous homeowner about rats.
Property analyst Nigel Lewis at FindaProperty.com told The Daily Mail that it “may be the cheapest home in the UK, but could need somewhere between £25,000 and £50,000 spent on it to make it legally inhabitable”. The building’s low cost classes it as a “desperation home”, says Lewis, making it an ideal opportunity for an investor to renovate the property and rent it out on the UK’s booming buy-to-let market.
Auctions of dilapidated property give investors the chance to pick up a house for an extremely low price, but buyers do not have to put up with mouldy floors and peeling paint to grab a property bargain. Indeed, real estate prices in Spain have dropped by up to 50 per cent in popular resorts, it was announced this week.
Statistics released by the Spanish government revealed that the price per square metre for Spanish property is now approximately 1,700 Euros on average, a significant decline of 22 per cent since the peak in 2008. But on a local scale, Kyero reports that resorts on the Costa del Sol and Canary Islands have seen house prices decline by up to 49 per cent.
While house prices continue to fall across both the UK and Spain on a national level, some regional real estate prices are lower than the country's average. When looking for affordable property, buy-to-let investors can head to the Rhondda Valley for Maerdy's mouldy home with rats, or smart buyers can turn to Spain for an affordable home with a beach.
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