It seems Kirstie and Phil were bang on the money (literally) when they first fronted their breakthrough TV show- Location, Location, Location – new research from the UK’s biggest mortgage lender has revealed that area has far more impact on UK property value than any other factor, and a house in a great location can command up to 50 per cent more than one in a less sought after spot…
Now, this is great news for me – I spent months agonising over whether to go for a house in a not so good area or a flat in a great area for my first purchase – in the end I plumped for the flat and this research proves it was the right decision – with location of UK properties affecting price more than anything else.
Research from the Nationwide has also shown that creating more space by building a conservatory, extension or adding a loft conversion are important value-adding factors.
In housing terms, having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it.
An increase of around 10 per cent in floor space leads to a five per cent increase in value in a typical property and seven per cent to a detached house. Adding an extra bedroom or bathroom in a loft conversion could boost the price of the property by up to 20 per cent.
Adding a 13 square metre double bedroom to a two bedroom house can push up its value by 11 per cent.
But, despite the added space being a bonus, it doesn’t come close to adding on the same sort of value as a great location does.
Nationwide Chief Economist Martin Gahbauer said, “Location is still the biggest factor affecting the value of property and a house in the best neighbourhood can command a price nearly 50 per cent higher than a similar house in an average area.”
“Overall similar homes in the most desirable areas cost 98 per cent more than ones in the least desirable locations, although some of the difference is likely to be due to the fact that homes in well-off areas tend to be better maintained,” he added.
The location, location, location phrase still holds true and has become more important over time. The difference in price for a similar house in the most and least desirable areas was 72 per cent in 1991, 80 per cent in 2005 and is now 98 per cent.
Even compared with average areas, properties in neighbourhoods populated by prosperous professionals typically sell for a 47 per cent premium, the equivalent of £75,000.
At the other end of the spectrum, a similar property in a less sought-after area would carry a 26 per cent discount – around £40,000 – against the average UK property.
For more information on UK properties and the market in general, please visit http://www.themovechannel.co.uk/
-ENDS-
Notes to editors:
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