Despite the housing market slowing down at the beginning of the pandemic, research shows that the average UK house price increased by 8.5% by the end of 2020 due to buyer demand increasing during lockdown. “Supply and demand are some of the biggest factors which affect property value,” building and construction expert Thomas Goodman at MyJobQuote explains. “If demand for property increases, yet the amount of property available (the supply) is stagnant, then the price of the property will increase with the extra demand.”
However, there are perhaps more surprising factors that affect your property value, including specific location, proximity to schools and even restaurants and pubs. Below, Thomas explains the different factors which can affect your property value.
- Living by the coast – 31% average increase in price
It turns out a sea view can come at quite a big expense. Studies show that homes with a sea view are 31% more expensive than those without, and even just living closer to the seafront can see property value increase by up to 25%.
Thomas explains, “Many city dwellers decided to up sticks and move for a more leisurely pace of life during lockdown. With offices, schools and even entertainment venues closed for the majority of 2020, many city dwellers reassessed their living situations and decided to relocate for a more leisurely lifestyle. The ability to work from home also means many people no longer need to live close to their office.”
2. Country living – 14.2% average increase in price
Before the pandemic, living in more rural settings may have seemed more like a pipedream to many who worked in the city. However, many young professionals and first-time buyers are moving further afield to get more for their money. “Many young professionals struggle to stay in or near big cities, where they tend to work, mainly due to the affordability. Yet now more people are working remotely, it is possible to move to the country, where buyers can get a lot more space for their money,” Thomas explains.
3. A parking spot – up to 10% increase in price
A property with off-street parking is said to be worth 5-10% more than one without, so many homeowners have added a driveway to their front gardens for both convenience and to help increase their property value. “The average cost of installing a driveway is around £3500, yet by adding one, a house could go from being worth £300,000 up to £330,000, so many homeowners see this as a good investment,” Thomas explains.
However, although you may not require planning permission to simply pave your front garden, you will require permission from your local council to drop the kerb outside your property, which can be timely.
4.“Outstanding” schools – up to 8% increase in price
Recent figures released from the Department of Education show that house prices are 8% higher near outstanding primary schools and 6.8% higher near outstanding secondary schools. However, this may not be surprising as many schools require pupils and families to live within their catchment area.
The so-called “school premium” is something which many parents consider when buying a new home, whereby they decide to buy a more expensive property to help get their children into better schools in the area. This is also seen as an investment as properties near good schools tend to hold their value, even in difficult markets, meaning homeowners can almost guarantee a return on their income if they decide to sell later down the line.
5. Fine dining and gastro pubs – up to 50% increase!
Although you may think living by a pub may negatively affect your property value, recent studies have shown that living by a quality pub (or a gastro pub) can help boost your property value – although the location of your property plays a part in this too. “If you live near lots of pubs and nightclubs, then this can decrease your property value by up to 9%,” Thomas reveals. “Yet, if you live in a more rural area with a nearby village pub, this can help boost property value, as living near a local pub is seen as a desirable factor.”
Living near a Michelin starred restaurant is also said to increase your property’s value by a massive 50%. The better the restaurant’s reputation, the better the value of the nearby properties.
