£385,000 for rock star's houseboat

It has low ceilings, no garden to speak of and there is an ever-present risk of motion sickness. On the other hand, it is in Chelsea, with unbeatable river views and some famous neighbours. And today this houseboat will change hands for £385,000 - thought to be a record for London.

The Encantada in Cheyne Walk, has been the home of Australian rock star Nick Cave - known for dark themes and morose lyrics. But the price is likely to bring a smile even to his face. Contracts are due to be exchanged today with a young woman who has asked not to be named.

The Encantada has two bedrooms, two storeys and 147 square metres of floor space. A converted Thames lighter, it has wooden floors, an open-plan living area and two bathrooms.

Bob Geldof 's girlfriend Jeanne Marine owns a riverside retreat just two boats along. Damien Hirst is believed to own another nearby boat. Photographer David Loftus, whose works can be seen in Jamie Oliver's cookbooks, lives next door. Mr Loftus, 41, said the new owner has come to the right place. "The houseboat was bound to go quickly because it is so nice," he said.

"There is a close community here, it's a bit like a village. It's getting a bit pop-starry though. Roger Taylor from Queen was looking around one here, too." He said "everyone" had already been talking about the new owner, though no one had met her.

"I've lived here seven years and when Nick Cave moved in about three years ago I was worried about his composing - even though I was a fan - but he does it all on a grand piano, so there was only a faint sound. He didn't have parties, he was very quiet.

"He's a real sweetie. He's had a troubled life, so he's keen to be the family man now. "

Cave, 47, has recorded more than a dozen albums with his band The Bad Seeds, and critics consider him one of the leading songwriters of his generation.

But he is probably best known for his 1996 duet with Kylie Minogue, Where The Wild Roses Grow. He is married to English model Susie Bick, with whom he has twin sons, and has two boys from a previous relationship.

Russell Day, director of Riverhomes.co.uk, which is managing the Encantada sale, said: "Prices have gone up but for the location it is still really good value. Cheyne Walk is the best address in London and for the square footage, it is very reasonable. People like houseboats because they are the ultimate in relaxation with wonderful views."

There are there are about 200 moorings between Tilbury and Teddington and some 800 houseboats. The Cheyne Walk mooring, for about 50 boats, is undoubtedly the smartest. Refitted barges start at about £30,000 but high-spec houseboats can cost up to £250,000. In a location such as Cheyne Walk, owners have to pay around £750 a month for mooring.

Elsewhere mooring costs are £4,000 to £6,000 a year. A spokesman for the Residential Boat Owners' Association said: "More people are looking at boats because property has become prohibitively expensive."

Estate agent Ben Eastwood added: "A houseboat is one way to get a lot more for your money, in terms of space. But it's a tiny market, with only a handful of sales each year.."