Homebuyers struggle to beat heatwave
Homebuyers struggle to beat heatwave as air conditioned homes account for just 1.2% of all property listings
As we continue to endure a scorcher of a summer, the latest research by leading London lettings and estate agent, Benham and Reeves, has shown that homebuyers with hopes of purchasing an air conditioned property face a tough task, with just 1.2% of homes currently listed for sale offering this additional feature.
Benham and Reeves analysed current market for sale stock, looking at what proportion of homes currently listed for sale on the market offer the added bonus of air conditioning to help tackle the summer heat. Benham and Reeves then looked at the added value air conditioning can bring to a properties value once the cost of implementing it has been accounted for.
The research reveals that across England, just 1.2% of properties currently on the market offer the relief of air conditioning for the hot summer months.
London leads the way when it comes to air conditioning property availability, but even still, just 2.3% of available properties have air conditioning.
The East of England follows closely with 1.5%, and the South East has 1.1% of listings with this feature.
Other regions, including the East Midlands and West Midlands, have even fewer homes offering air conditioning to potential buyers and just 1.0% and 0.6% respectively.
But is air conditioning a worthwhile investment for sellers looking to boost the value of their home whilst selling in summer?
The decision to invest in air conditioning is largely dependent on the value of your home. On average, it’s estimated that installing an air conditioning unit can add around 2.5% to the value of a property. However, it comes with an installation cost of approximately £3,000.
Based on the current average house price in England of £290,395, this air conditioning added value would equate to £7,260, however, the actual added value totals just £4,260 once the cost of installation is accounted for (less £3,000).
In London, where the average house price is considerably higher, the impact of adding air conditioning becomes more significant. Here, an air conditioning unit could add £11,141 in value to a property once installation costs are deducted.
Director of Benham and Reeves, Marc von Grundherr, commented:
“With a particularly hot summer so far, homebuyers could be understandably tempted by properties offering air conditioning as a way to beat the heat.
However, they may be hard pressed to find a property that fits the bill, with homes complete with air conditioning accounting for a very small proportion of current for sale stock.
Of course, whilst it’s undoubtedly getting hotter, air conditioning remains more of a luxury than a necessity in the UK and so it’s unlikely to hold broad appeal and, therefore, won’t bring about much of a boost to the value of your home. But as our summers continue to get hotter, it’s entirely possible that air conditioning could become a necessity for many buyers, and its inclusion may well become a sought-after feature in the years to come.
It’s already a feature that is in high demand within the rental market and we tend to see properties offering air conditioning attract a premium of anywhere between 10% and 20%, particularly those offering shorter term rentals aimed at international renters during the summer months, for whom air conditioning is a must have.”
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