Hunter Finance evaluates five factors that influence your property value
Property developers are constantly faced with key decisions every day. What type of wood should we use for the bedroom doors? Should we get rid of a wall for an open layout? Water feature or no water feature? Kitchen colour plain white, gloss or wood?
All these factors can determine the fundamental house value, but have you considered how influential external factors are? Property Developers are seeing falling prices and hence profits in the Sussex, Hampshire, Hertfordshire, Surrey, Bedfordshire, Berkshire, Essex and Kent areas.
In our guide, Hunter Finance covers and highlights key influencers that could help increase the value of the property you build without spending another pound build costs. If you are interested in financing your own project then please get in touch.
1) A School for Generations to Come
The importance of a high-performing school is incredibly fundamental when assessing your property value. Young couples or families will compromise and prioritise their children’s education.
“Savills estimates that a top performing school can add around a 25% increase in property value compared to the regional average.”
Furthermore, the best performing non-selective state schools can push home values up by 20%. When assessing areas to build, always check how the schools in the area are performing, they could be critical in ensuring your property earns a reasonable profit when sold.
2) A Home with a View
Have you considered what the surrounding area of your property looks like? Views of the coast, lakes and riversides can increase the value of your property substantially. Hunter Finance has helped many developers build houses along the waterfront, including this incredibly-designed home.
“A view of the coast can improve a home value by 47%, a lake is more modest at around 36% whilst a riverside can double your property value with an added value of 53%.”
Potential buyers are becoming more aware of the natural environments around them. Houses that can offer these types of views have an edge on other properties without views.
3) The Supermarket Premium
Never underestimate the convenience of being near a supermarket. Research and figures show that supermarkets are beginning to have a substantial effect on property values.
“The Waitrose effect can improve a property value by more than 12% whilst a Marks and Spencer’s can add just over 10% too. However a Lidl close to your property devalues it by over 7%”
Size doesn’t tend to matter either, with Tesco extra’s capable of adding around £30,000 to your property value too. Properties close to a supermarket generally command a higher price than those that are a little further away.
4) An Escape to the Park
Green space is vital for couples that have a healthy, active lifestyle, or for families that have children or pets. Studies show that properties in close proximity to parks and commons can generally add an additional 20% to their property value.
“Potential homeowners are aware of how valuable open green spaces are, even more so if they don’t have immediate access to their own garden.” Bill Hunter
Urban areas are more prone to feeling the positive effects of having an open space near them. Having a natural space nearby is becoming an increasingly bigger selling point, with potential buyers recognising the importance of being active and socialising.
5) A Tube/train Journey could be Valuable
If you’re building or already have properties for sale in and around the London area, a reasonable distance from a tube station can add around 30% to the property value.
“New homeowners buying London will pay extra if their home is connected to London via the tube.”
Although being near a tube station may be beneficial to your property value, living near bus stops can actually affect your value negatively.
If there’s a piece of land or property that you’re keen to buy and these criteria’s are tied in with it, consider our various finance loans to quickly help you secure the property.