What Makes House Prices More Expensive in Certain Areas?
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Looking for the ideal home can have you scouring a variety of areas close to where you’d want to live. One thing you might notice is a severe jump in price for houses in some areas despite the properties themselves not being that much bigger or better than others on offer.
This is due to the fact that house price is calculated on more than just what a property offers within its four walls.
What Makes House Prices More Expensive?
We’ve summarised a few of the other major factors that can go into making the houses in a particular area more expensive.
01. Proximity to Schools
For parents or parents-to-be, thinking about the kind of education their child will receive from local schooling is crucial. As the primary and high school that children will attend is predominantly dictated by catchment areas – certain postcodes or homes within a radius surrounding a school – your permanent address can affect which school a child will get a place at.
If an area has particularly a good school within it, as rated by an Ofsted report, then the house prices will increase due to the additional benefit of living at that address. The greater the appeal of the school, the more people will be looking to move into the area. It’s this larger demand for properties which pushes prices up.
02. Access to Transport Links
Commuting into work can be a long and arduous task if you don’t have easy access to public transport nearby or a convenient driving route.
Areas with a reliable rail network or a variety of bus route which serve the community will have a greater appeal as it gives residents more options for getting around. An example would be outer London areas with easy train access to London are typically seen as desirable due to the direct access to the vast rail network within the capital.
As more people are potentially set to work from home or have hybrid working in the near future, there could be less value placed upon nearby transport links. But for now, properties which are close (but not too close) to train stations, bus stops, and useful road networks are going to be popular.
03. Local Amenities Responsible For Housing Prices Rise
People don’t want to have to travel too far for the essentials in life. Locations which have a good selection of amenities – supermarkets, convenience stores, restaurants, post offices, green spaces etc. – will likely have a greater appeal due to how convenient they are to get to. This can result in property prices being pushed up as more people want to live close by.
Not only can having these central areas of amenities add a practical advantage to living nearby, but they can also encourage the formation of vibrant communities in the local residential areas. For some, this can add value if you want to join a local club or hobbyist group.
04. Overall Reputation of Living Area
The longstanding perception of an area can weigh into the decision of where to live quite heavily. Although neighbourhoods can change quite rapidly as cities expand, the negative association people can with of certain areas can suppress interest in property. The inverse is also true – areas which have always been viewed favourable will see a consistently high level of interest.
When moving to a new city, people will typically seek out the areas which are considered to be good within opinion pieces or based on recommendations. Site such as Zoopla can also offer statistics about the local area that could reassure or dissuade someone from living in a certain area.
In summary, external factors which add benefits to living in a particular area will drive up property prices due to higher demand. The higher demand an area sees, the more it is likely be considered a good place to live. Looking at areas which suit your needs can allow you to get an idea of the average price you’d need to pay and allow you to spot a good deal on a property when one might appear.
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