In the face of Brexit, What factors add value?
Across the UK, house prices are fluctuating daily amidst Brexit uncertainty. Some days they are up, some days are down, but for a nation obsessed with the property market, what makes for a valuable area? The Open Property Group Investigates.
Good Neighbours
Good neighbours make an area far more valuable than one that is filled with nuisances, £19,856 nicer to be exact. On the flipside, neighbours from hell can wipe over £17,321 off a property’s value. Similarly, areas which boast low crime levels are likely to be more valuable than those with rising crime levels.
Good Schools
A good school is also vital for an area to be valuable. Savills estate agents suggest that a good school adds 25% on to the house’s value than one that is situated next to a poorly performing institution.
Ofsted can thus be either a Godsend or very harmful for a property’s asking price. A poor Ofsted report can see up to 8% knocked off the value whereas a good report can see buyers pay an average of an 8% premium on a home.
The Waitrose effect
Without stating the obvious, upmarket shops and restaurants also do wonders for the value of an area. In fact, if the area has a Waitrose, it is one of first things an estate agent tells any potential buyers. And why? The so called “Waitrose effect” is said to add 12% (or £40,000) on the average property.
As well as having a fancy local supermarket, a swanky restaurant is equally as beneficial for the value of an area – areas with Michelin-starred restaurants are said to house properties worth 50% more than that region’s average.
No eyesores
The visual aspect of an area is also key to its worth. Eyesores such as wind turbines and mobile masts can be damaging for an area’s value. However, areas with pleasing views boast more expensive house prices.
A sea view in the South-West can cost a premium of up a staggering 66%, estuary views 82% and harbour views 81%.
Leafy areas are also said to see a hike in property prices, research shows that streets with trees planted bring an average of £4,700 extra. In a different environmental aspect, areas with good flood plains are now highly sought after.
A flood can cause up to £40,000 worth of damage to a home so areas with prevention tactics are worth more than those without such measures in force.
No Traffic
Traffic is also crucial to an area’s worth. An area with a build-up of lots of traffic are far less valuable than areas with a quiet traffic scene. And as well as having a quiet morning commute in terms of what’s on the road, the noise coming from the roads can also knock a chunk of an area’s value. Loud road noises are thus a huge no.
Fast Internet
With so much of our private and professional lives dependent upon the World Wide Web, good broadband speeds are now essential. An area with fast internet speeds (over 25mbps) will see properties with much higher house prices than those with a poor connection.
Market Towns
Bringing our list to a close, Market towns are also said to make far more valuable areas. Research by Lloyds revealed that properties in market towns were worth an average of £25,000 more than similar properties, not in market towns.
If a property meets all these conditions, there is absolutely no reason why it shouldn’t be able to sell despite the current uncertainty surrounding Brexit.
You May Also Enjoy
London defies Build to Rent slowdown
Disappointing year for UK construction gives way to industry-wide recovery
Agents report early uplift in buyer activity
Smaller deposits and higher LTVs mortgages drive FTB activity
Improved affordability provides boost to first-time buyers
