When people look for a new house in London, a few factors they always look for. Low crime rates, excellent transportation links, and good quality schools are to name a few. Though the cost of a house depends largely on these factors, these are not the only deciding factors in the value of a property. Studies indicate that people look for quite unconventional aspects nowadays due to change of priorities.
Buyers give more importance to certain factors that either didn’t exist earlier or not very important in the old days. The new age parameters are directly related to modern lifestyle and choices.
A good supermarket inflates the price as high as 15 percent!
Isn’t it amazing and unbelievable? Yes, but it is true. There have been various studies conducted by property experts about the most influential factors for property rates. The proximity of a supermarket comes out to be one of the influencing factors for the value of a house. Homebuyers always pay attention to it while making a buying decision. However, there isn’t a similar impact is for all supermarkets.
A house located close to a mall showed more increase as compared to a comparable property that isn’t quite close. The increase in the price depends on the brand of the supermarket. Brands like Waitrose surged the prices around 12 to 15 percent, Sainsbury’s in the range of 10 to 11 percent, and Tesco made a difference of 6 to 8 percent on an average. Reputed brands like Marks and Spencer raised it 7 percent high. Cooperative local brands caused a difference of 3 to 4 percent in the property rates.
It proves that the distance from the supermarket is a critical factor. The correlation gives another important hint. Since it is a deciding factor, one must look at it while buying a property to get good value for money. Interestingly, the research was conducted in other big cities and towns of the UK, but the maximum impact was seen in London. Other cities showed an increase, but not that significantly. It means that people in London give quite a lot importance to it.
Good schools also raise the prices
Banks and financial institutions are always interested in knowing about the influential factors. As stated earlier, there is a clear correlation exist between shopping malls and property rates. Another game-changing factor is the availability of good schools around. There has been evidence of 10 to 12 percent increase in property rates because of top quality secondary or senior secondary schools in the nearby areas. In places like Buckinghamshire, rates increased exceptionally high due to the presence of elite class educational institutes. Families don’t bother paying more if they feel there is good future guaranteed for their kids. They want a home near excellent educational institutes so that the kids don’t waste time in commuting. Since there has been an increase in the paying capacity of middle and upper-middle class people, even houses around top class schools like Clitheroe Royal or St Saviour’s or St Olave’s also expensive as compared to other places.
Government records indicate that the average prices of areas are more than the national average price where good schools are nearby. The difference is as high as 30 percent as compared to the neighboring places. Mortgage experts and loan advisors say that since parents feel that their kids have a chance of going to great schools, they don’t mind paying premium rates. Since each school has a catchment area (they do not entertain admission requests beyond this area), parents have to buy a home in the catchment area if they want admission to the preferred school.
Though many people feel that it is an improper practice because people with a limited earning lose the chance of getting admission to great schools, there is no way of controlling it because of an open market policy.
Does the address also make a difference?
Believe it or not, but an ‘elite’ address boosts the value of your property dramatically. There has been a lot of research done to understand the correlation between an attractive property address and its rate. Surprisingly, a “sexy” address increased the value up to 40 percent. For example, addresses containing words “Square”, “Crescent”, “Palace” and “Villa” are quite interesting. People tend to draw a picture around these names, and usually it is incredibly attractive and appealing. The word “Crescent” was at the top of the list with a phenomenal increase of 40 percent. Dull and boring words like “Court”, “Road” and “Street” are pessimistic and submissive.
The study was undertaken in various places of the UK. However, the most significant correlation was seen in big cities like London. Desirable addresses add a special charm to the property, and it becomes lucrative and interesting. The study did not use a small sample for a short period, but it was an extensive and comprehensive study that took around one year to complete. The sample size is large enough to make it authentic.
Experts say that the research triggers new marketing ideas. Creative teams use their energy and skill in coining new and exciting names that impact the buying behavior. The naming strategy takes into account the impact so that desired hike in the price can be achieved. Surely, people look at the quality of construction, locality, public facilities and peacefulness before taking the final call. However, attractive and impressive address also becomes a deciding parameter.
Some people feel that such addresses inflate property rates making them unreachable for many buyers. However, property dealers have a different opinion. They feel that since it is an open market, everyone has a fair chance of choosing a property that looks attractive irrespective of its name. When people get a decent house in reasonable rates, they do not look at the address or name. On the other side, those who are ready to pay premium prices just for the sake of a “sexy” property name do not look at the utility or other factors at all. They just don’t look at the price tag. Thus, it is totally a personal decision and perception!