Britain's Most Expensive House: Empty Palace, Homeless Resident on Porch

The Lead

In the heart of London's most exclusive neighborhood, a £210m palace stands empty while its only resident lives on the porch. The stark contrast between Britain's most expensive house and its sole occupant—a homeless man named Anders Fernstedt—highlights the growing disconnect between extreme wealth and housing inequality in global cities.

The Empty Palace

2-8A Rutland Gate is no ordinary house. With 45 rooms, four lifts, an indoor pool, and 116 windows (68 of which overlook Hyde Park), it's more accurately described as a palace. When it last changed hands in 2020, it became Britain's most expensive property, selling for £210m. Yet despite its staggering value and prime location in Knightsbridge, the property has remained vacant for years, its marble bathrooms and gold-leaf decorations gathering dust while Fernstedt lives in a makeshift tent on the porch.

The Porch Dweller

Anders Fernstedt has called the porch of this luxury property home for the past three years. His makeshift shelter, constructed mainly from umbrellas, is filled with personal belongings—baskets, books, newspapers, teddy bears, games, bicycles, and flowers. Despite the grandeur just feet away, Fernstedt must use a plastic bottle for bathroom needs, joking about 'Everest base camp problems.' His presence creates a powerful visual metaphor for the housing crisis in one of the world's wealthiest cities.

The Ownership Puzzle

The property's ownership history is as complex as its architecture. Originally a row of terrace houses, they were purchased by Lebanese billionaire Rafik Hariri in the early 1980s and converted into a single palace. After Hariri's assassination in 2005, the property went to Saudi Crown Prince Sultan bin Abdul Aziz. Following his death in 2011, the house was sold again in 2020 to a company registered in the British Virgin Islands, reportedly owned by Chinese billionaire Hui Ka Yan, founder of the property giant Evergrande.

The Global Property Market

This story reflects broader trends in global real estate. Research shows that over the past decade, the value of offshore residential property in England and Wales has increased from £64bn to £80bn. London serves as the hub, with 47,000 overseas-owned residential properties—45% of the total and 81% by value. Half of this total value is concentrated in just two local authorities: Westminster (34%) and Kensington and Chelsea (16%), where Rutland Gate is located.

The Uncertain Future

The current status of the property remains uncertain. After Evergrande's collapse in 2024 and Hui's guilty plea to fraud charges, the house's ownership has become entangled in legal complications. While the property was reportedly transferred to Hui's ex-wife Ding Yumei, her assets have been frozen, preventing any sale. Meanwhile, the luxury palace continues to sit empty, its potential as a home unrealized, while its porch remains occupied by a man with nowhere else to go.