London Garden Sales Rise as Owners Seek Funds

A growing number of homeowners in London and the surrounding Home Counties are opting to sell portions of their gardens to property developers as a means of financial relief. This trend is driven by increasing financial pressures, including rising mortgage rates and the desire to remain in their homes.

Financial Pressures Fueling the Trend

Homeowners are utilizing this strategy to pay off mortgages, fund retirement, and provide financial assistance to family members. Companies like Caswell & Dainow are actively seeking suitable plots and offering homeowners a significant financial return.

Agnelo Fernandes' Story

Agnelo Fernandes, a 68-year-old retired bank worker from Arnos Grove, north London, found his mortgage repayments nearly doubled to £1,000 a month after his fixed-rate deal ended in 2022. Combined with health issues making garden maintenance difficult, he welcomed an offer from Caswell & Dainow.

The developer purchased 200sqm of his 270sqm garden for £150,000, allowing him to completely clear his £147,000 mortgage. Fernandes was also involved in the building process of the new three-bedroom detached house, expected to sell for between £750,000 and £800,000.

Ahmet Ziya's Experience

Ahmet Ziya, a 68-year-old retiree in Lewisham, south-east London, had previously been denied planning permission twice for building on his garden. Caswell & Dainow successfully secured planning permission to purchase 175sqm of his 330sqm garden.

Ziya received a ‘high five-figure sum’ in September 2024, which he and his wife plan to use for retirement and to help their son buy a property. A key consideration was ensuring the new three-bedroom bungalow, now for sale at £750,000, wouldn’t impact privacy.

Caswell & Dainow and the Growing Market

Caswell & Dainow, based in east London, is a leading company in this trend. They use aerial photography and planning expertise to identify potential properties across London and the Home Counties. They’ve completed around 50 projects, with payouts typically ranging from £100,000 to £150,000 per plot.

Potential and Challenges

The company estimates approximately 9,000 London properties are viable for this type of development, particularly in areas like Brent, Waltham Forest, Newham, Barnet, Tower Hamlets, and Haringey. While a minimum plot size of 100sqm is typical, exceptions exist. Prime central London locations, however, face stricter planning regulations and higher property values.

Other developers involved include Clarendon Homes, Marches Homes, and Muller Property Group, indicating a growing market for this approach to property development and homeowner financial support.