Derelict Shed In South-East London Sold For Over £400,000

A dilapidated shed located behind an empty London launderette has sold for an eye-watering price this week, in one of the clearest indications yet that England's capital is having its property prices romped up.

The ramshackle building, which is 1,108 square feet in total, fetched £440,000 in a bidding war - £100,000 over the initial guide price.

Planning permission has since been granted to the mystery new owner, and their prize property is expected to be converted into a two-bed home, complete with a garden area.

The building was originally a blacksmith's workshop, but Southwark Council documents reveal it later fell into disrepair, becoming a 'dumping ground' for old equipment and objects.

Chris Coleman-Smith, Savills head auctioneer, told the Evening Standard: "This is a fantastic opportunity for an owner occupier or self builder that wants to work on their own property.

"It is definitely unique."

The newspaper reports that properties like those the shed is set to be turned in to can fetch up to £750,000.