How to determine the value of a London home: how much does a park view or a quiet street actually add to the value of a property?
The Value of a London Home
A property’s worth isn’t determined by size or location alone. We reveal the top 14 assets that add to the value of a London home…
A property’s value is determined by so much more than its size in square feet or location. Ceiling height, access to open space and potential for expansion all come into play when a buyer is deciding how much they are willing to pay, regardless of the sale price or how much a house down the road has recently sold for.
A new report from Savills reveals how to determine the value of a property beyond the basic premise of space – and you may be surprised to find out that technology is worth more than period features.
Basing their research on a “typical” four-bedroom family home in London, they surveyed their estate agents and have put a price on coveted features that are not necessarily factored into valuations – such as off-street parking.
Some of the most valuable and surprising assets a house can have are listed below, while the full list is revealed in the gallery above…
PARKS AND OPEN SPACES
Homes that are close to open space have the potential to command some of the highest premiums, up to 20 per cent – potentially adding £125,000-plus value to a home.
“Homes around parks are some of the most desirable in the London property market because outside space is always at a premium,” says estate agent Simon Edwards, from Savills Hampstead.
“Whether it’s a heath, a common, a garden square or a park, having the space nearby is always going to be important, particularly so if it’s a family home and you have young children.”
Living on a peaceful street is also a big win, adding up to 15 per cent, or around £187,500 value to a property price.
“Occasionally we will have feedback from buyers saying love the house, but the location is too noisy. If you head round the corner, you can often find a very similar house on a much quieter road, which would command a substantial uplift because of it’s ‘peaceful streets’ status,” says Matthew Gilbert from Savills in Ealing.
TECH & GOOD EPC RANKING
A home with the latest technology – smart home features, or a kitchen with state-of-the-art appliances, for example – sends a message that the property has been invested in, boosting the price by anywhere up to eight per cent – or £25,000-plus.”These features generally reflect the state of the rest of the house too. For example, if the owner has put in Miele and Gaggenau appliances, they probably have invested in a good boiler too,” says James Diaper, Savills Hampstead.
An A* EPC ranking only adds up to two per cent to a property’s value now – but this looks set to become even more important as energy bills continue to increase.
Estate agents can set an actual price on floor-space, but buyers also think in volume.”Volume is tangible, you feel it as soon as you walk into a room and buyers always remember it,” says Gilbert.
High-ceilings and a good sense of space – so no clutter – are certain to increase a property’s value by up to 10 per cent, or £125,000.
Savills based their research on a “typical” four-bedroom family home in London, set on a popular road, within a 10-minute walk from a station and valued at about £1.25 million.