It’s only natural to want to get the highest possible price for your house.
An excellent property value allows you to upsize, and improve your lifestyle.
So, what are the factors that affect your house value?
We’ve listed the most important details below.
1. Location
Your location in the UK is important. Some areas are ‘more desirable’ and thus have higher house prices.
You can get excellent deals in some lesser-known parts of the country.
The south-east of England has the highest property prices in the UK. And London is by far the most expensive.
The north-west of England is the least expensive spot in the country.
In Scotland, Wales and Northern Ireland, the major cities have the highest prices. Rural areas are far more affordable.
Your location is also important relative to the local area. The specific street you’re on, and the neighbourhood, can move house prices by tens of thousands.
2. Square footage
A large house is far more valuable as more people can live in it.
You’ll often list your square footage when you advertise your property for a buyer. The number of bedrooms, living areas, and bathrooms are also crucial.
A flat with less than 500 square foot is generally considered to be small. Meanwhile, any detached house with more than 2,000 square foot is large.
Sometimes, a house could ‘feel’ far larger or small than it actually is. This plays a part, too.
3. Local amenities
When you have lots of useful facilities close to your house, it improves property value. Examples include:
- Schools
- Shops
- A high street.
But if you’re in the middle of nowhere, this means that the costs of accessing the things you need will be higher. Property prices generally drop because of that.
It could also be a hospital, car park, and a library. It’s not only about how close these things are, but how useful and nice they are.
Some buyers could walk away if you’re in the middle of a busy high street, with lots of traffic and noise. So, it’s a careful balancing act.
4. Condition
You should keep your house in the best possible condition when you sell it. Or improve its condition to really add value to it.
Many homeowners pay for a deep clean right before it’s listed on the market.
Fix any major issues such as broken furniture. Clean the windows and doors.
Holes in the roof or structural problems will undoubtedly reduce your house price by 10%, or more.
You must always disclose property defects.
If a problem is revealed which you didn’t tell them about, your buyer could walk away. And if the sale goes ahead, you could be sued after the event.
5. Features
This might seem obvious, but some features in your property will increase its value by quite a bit.
On the extreme end, a swimming pool or greenhouse are valuable features found in the most expensive houses.
More commonly found features include ponds, treehouses, and trampolines.
Alack of features will see your buyers offer below the market value. If you haven’t got a built-in fridge or wardrobe, then the offer might reduce by a few thousand pounds.
The nature of your buyer could also make a difference.
For example, bathrooms on the ground floor are seen as desirable for older people. But younger buyers likely won’t care.
6. Market conditions
Believe it or not, there are factors influencing your property value other than the house itself.
External economic conditions can have a big influence.
If it’s a ‘buyer’s market’, then property value tends to drop, as the buyers have more negotiating power. Whereas in a ‘seller’s market’, house value increases.
Interest rates influence how expensive a mortgage is. This translates into house prices as well.
And market conditions vary not only on a national level, but locally. Investment schemes and council initiatives in neighbourhoods will move house values in the area.
7. Government policies
Government policies can have both a positive, or negative influence on a property area.
In a conservation area, or an AONB, changes to a property are difficult to get permission for. Anyone who wants to extend a house will see this as a negative.
But those who want to keep the town’s existing appearance will love it.
Likewise, listed buildings are seen as valuable, but also involve a lot of hassle to maintain.
On a national level, the government may introduce schemes that influence house value.
For example, first-time buyer initiatives help people onto the housing ladder. But it can influence valuations on the lower end of the market.
8. Type of ownership
You should do plenty of research into the type of ownership involved with any property. Although this may not sound exciting, it’s important.
A shared ownership property is less valuable, since you need to share it with someone else.
Meanwhile, a leasehold property’s value is dependent on lease length. Below 80 years, the house value drops like a rock.
Whereas if your lease length is 990 years, it’s far more valued by buyers.
9. Crime rates
This subject ties in with the location of your property.
People want to live someone that’s safe. Especially if they’ve got young children, which makes this a higher priority.
If your house is in a safe neighbourhood, then you should get the crime statistics to prove it. Ensure that your estate agent emphasises this. It can improve the attractiveness of your property.
Meanwhile, in a high crime area, you could need to compromise on price. And focus on what’s happening to improve the situation, if it comes up in conversation.
10. Parking
Parking is quite an important issue for lots of people.
If you’ve got a designated parking spot that no one is allowed to use, then this is the most desirable. It could improve your house value by up to 5%.
Meanwhile, if there’s no parking spot at all for your house, this is a huge negative.
And shared driveways are somewhere in between.
Unless you’re close to public transport, and your buyer doesn’t drive, they’ll care. Expect a reduction in value by up to 10%.
11. Property history
This is usually covered in the conveyancing part of a house sale. The history of your property can flag up some issues, or benefits.
If your property has flooded repeatedly over the years, this will reduce its value by up to 15%, or more.
Especially if nothing’s been done to fix it. Building insurance could be impossible, for example.
Ongoing disputes with neighbours is another negative. Buyers won’t want to inherit this.
Meanwhile, if none of these issues come up, then a buyer will be happy.
It makes your property far more attractive than some of the others on the market.
