The value of property is, for the most part, dictated by the ebbs and flows, peaks and troughs, of the housing market. When the market is strong and demand is high, homes are worth more money. When the market is weak and demand is low, house prices fall. But, there are additional factors, things that can either add or detract value from a home which are largely immune to the tides of the market.
In this article, we’re going to focus on those things which can be considered market-immune value-adders, all of which you should consider in the context of your new home holding its value for when the time comes to sell it on.
Proximity to schools a guaranteed value-protector regardless of the state of the market. The closer to a school, the better. If it’s a so-called ‘good’ school, you’re really laughing.
In fact, research from 2019 showed that homes located near to schools rated ‘outstanding’ by Ofsted, often sell for almost £40,000 more than those near to schools rated ‘good’, and roughly £100,000 more than homes located near ‘inadequate’ schools.
As with most things, this fact is even more extreme in large cities like London, Birmingham, and Manchester.
Having a garden is great. In fact, having any private outdoor space, even if it’s just a courtyard, is a good value-adder for a home. However, the value of a home with a garden is still vulnerable to ups and downs in the market.
On the other hand, if a home is close to a large, public green space like a park or a common, it will always be highly sought after.
If a home is situated right next to a park, research from 2018 shows that the value rises by 20%. Urban properties within a quarter mile of a park rise by 10%. And if a home is located on a greenbelt, or near vast open spaces like one of the UK’s many National Parks, prices jump by an incredible 32% compared to the national average.
Basically, there is always someone who will happily pay a premium for a home surrounded by green, regardless of whether the market is up or down.
Once upon a time, before Covid-19, commutability was one of the most important value-adders for a home. Close proximity to a bus stop or, even better, a tube or train station, did a great job of helping a property retain and gain value.
Now that so many of us are working from home, perhaps for the foreseeable future, commutability has dropped down many people’s priority lists but remains a definite positive for any property.
Areas and districts can go through good times and bad when it comes to crime statistics, so it’s not always possible to predict what your area will look like a decade from now. However, there are certain places where you can pretty much guarantee crime levels will remain low. Much like proximity to schools, if an area is ‘safe’, the value of property will always be somewhat protected.
When checking crime statistics for the postcode you are thinking of moving into, you want to focus on burglaries and car crime – these are two things that insurance and mortgage providers pay a lot of attention to.
Check out the Office for National Statistics’s Crime & Justice reports for more info.
House buyers are paying more and more attention to air quality. We, as a society, are now acutely aware of the damaging effects of air pollution, as well as the great health benefits of fresh, clean air, all of which now means that many people expect hefty discounts on homes located in areas of high pollution
As such, when you’re looking to buy a certain property, it’s a good idea to do some research into the area’s current air quality statistics, and also its projections for the future because, if air quality is set to decline, so too might the overall value of the home. You can find some great info on this from the Air Quality Index.
Does your new home have any market-immune value-adders not listed in this article? We’d love to hear about them and maybe add them to this list. Drop us a message in the comments section below.