March 23rd, 2018
Whether you’re a first-time buyer or you’re thinking of upsizing or downsizing, when it comes to buying a new home, there are plenty of things to consider, not least, the value of your new or existing property.
This can be particularly important for freelancers, contractors, and the self-employed looking to secure a mortgage.
There are a whole host of factors that have an influence on the value of a property, both positively and negatively – from the amenities in the surrounding area, through to the size of the kitchen.
Here are the key factors that impact on the value of a property:
As a general rule, the more bedrooms a property has, and the more spacious those rooms are, the higher the value of the property. Adding extra bedrooms through extensions or loft conversions will usually increase the value of a property.
Along with the kitchen, when it comes to value, the bathroom is one of the most important rooms in a house. A modern, up-to-date bathroom will add value to any home, as buyers like the idea that they won’t have to replace it. Second bathrooms are also popular – adding an extra bathroom to a home can also add around 5% to its value.
Providing a space to safely store vehicles off the road, a garage can add between 5 – 10% to the value of a house.
A high performance, energy efficient central heating system that is unlikely to need upgrading in the near future, will enhance the value of a property. Since Energy Performance Certificates were introduced, energy efficiency has also become an increasingly important factor for buyers.
Good storage solutions are always viewed favorably by potential buyers, adding value to a property and increasing the likelihood of a quick sale.
It probably goes without saying that a high performing or popular state school nearby will add a significant amount of value to a property. In fact, according to a study by Savills estate agents, properties located close to good school could raise 25% more than those located further away.
A well maintained, attractive, and spacious garden will also add value to a property. A recent study by HomeSearch revealed that a tidy garden could add a massive 20% to the value of a property.
It turns out that we prefer living on hills to streets or roads! Research by Zoopla has shown that the price of properties with ‘hill’ in the address was more than double the price of properties on ‘streets’.
It comes as no surprise that a sea view will add a significant amount to the value of a home. A study by Knight Frank, for example, found that, in the South-West, a sea view will add up to 66% onto the price of a property, whilst estuary views add 82% and harbour views add 81%!
What’s in a name? Well, when it comes to property prices, quite a lot, apparently!
Research by globrix.com has found that one in 14 people are prepared to pay a higher price for a property with a name rather than a number. In fact, naming a house can add between 0.5 and 5% to its value!
Odd House Numbers
Perhaps equally as surprising, house numbers can also have an influence on the value of a property. According to research by Zoopla, odd-numbered houses, on average, are valued at £538 more than their even-numbered equivalents.
What’s more, a property numbered 13, it’s likely to sell for £6,500 less than its neighbours!
Public Transport Links
It goes without saying that being within close proximity of public transport links is likely to add significant value to a property.
According to a survey by nationwide, the closer you are to public transport, the greater the impact on the price of your house. In London, for example, being located within 500m of a Tube station can increase the value of a property by 10.5%, but if you move just 250m further down the road, this will drop to 7.6%.
And it’s not just the capital where transport links are favourable. Being situated 500m or less away from a Glasgow rail station adds, on average, £9,400 to a property’s value, whilst, in Manchester, being close to a Metrolink station can increase the value of a property by £8,300.
However, it’s also worth noting that being too close to public transport links can actually have a negative impact on the value of a house – the noise from train tracks running past the property or a bus stop right on the doorstep aren’t viewed favourably!
Having an allocated parking space directly outside a property will instantly increase the value, particularly in busy areas close to the centre of towns and cities, where parking can often pose a problem. In fact, it is estimated that, in a high cost, urban location, a parking space could add as much as £50,000 to the value of a property!
Restaurants and Shops
We’ve all heard the saying ‘location, location, location’. And it’s safe to say that location is still one of the most important factors when it comes to valuing a house.
Known as the ‘Waitrose effect’, a report by Lloyds Bank has revealed that being in close vicinity of an upmarket supermarket can add 12% or £40,000 to the average property price.
Michelin Stars are also in high demand, with research by primelocation.com suggesting that, in some areas with Michelin-starred restaurants, property prices were worth up to 50% more than the average for the region.
If you’re a contractor or freelancer, or you’re self-employed and you’re hoping to take your first steps onto the property ladder, get in touch!