It's a £1million bungalow that used to cost just £8,500 (no tall storey!)

• Three-bedroom property in Dulwich, south London, has just gone on the market
• It was bought for a fraction of the price in the 1970s
• Its owner defended the price, despite its outdated appearance
• It is in a desirable spot near two public schools and a golf course
• The same money could buy a listed six-bedroom house in Birmingham or a seven-bedroom detatched house with a swimming pool in Somerset

By Ryan Kisiel

Published: 17:45 EST, 18 October 2013 | Updated: 17:45 EST, 18 October 2013

It might just be a small brick bungalow that looks like it could do with a bit of modernisation.

But this single-storey home, which cost just £8,500 around 40 years ago, is now back on the market - with an asking price of nearly £1million.

The three-bedroom property has one reception room, a kitchen, a utility room and a 1970s-style bathroom.

High price, low roof: The Bungalow in Dulwich, south London, is on the market for £985,000

Close to two public schools and a large park, it is located in Dulwich, South London, opposite the house Margaret Thatcher lived in after she left Downing Street in 1990.

With prices rising to their highest levels in more than a decade, the bungalow is now on the market for £985,000 – the cost of a six-bedroom Grade II-listed house in Birmingham.

And for £1million a buyer could have a seven-bedroom detached house in Somerset, complete with swimming pool.

When the property’s owner was asked if he was surprised by its value, he said: ‘No, it was a des res area when I bought it 40 years ago and it still is.

‘Mrs Thatcher lived over there, as her husband loved to play golf and the Dulwich course is close.’

Roomy: The reception area is spacious but would benefit from being redecorated

Outdated: The flat features this 1970s-style bathroom

But a neighbour said: ‘It’s hard to get planning permission around here because we live in a conservation area and the committee is very strict, so extending might be difficult.’

They added: ‘House prices have gone crazy, but especially around here. I couldn’t believe it when I saw that it had been advertised for close to a £1million.

‘I don’t know who in their right mind is going to pay that for a bungalow.’

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