How Important is a Prime Location to House Prices and Property Values?
Living in a prime location can do wonders for the value of your home. Regardless of what you do to improve your home, there will probably be house prices in prime location areas that are way above those possible in your own area. Location is everything in the property market, and there is simply nothing anyone can do about it. If your home is in a highly desirable neighbourhood, it will probably attract a premium whatever condition it is in. However, if your home is located in a neighbourhood with a poor reputation, high crime rates or a lack of good amenities, even the most extensive and opulent of renovations will not be enough to compete with home values in more prestigious areas. There are several factors that combine to make certain areas highly sought-after property locations.
How much does a prime location affect house prices and property values?
Whilst it is possible for locations to become more desirable over time, the factors that contribute to this will usually be out of your control. According to the Channel 4 website, homes in the catchment areas of good schools can attract a premium of between 19 percent and 34 percent more than similar homes in less fortunate areas. Faced with no other choice, many parents are selling a house and moving to areas that are blessed with high-performing schools, and you could be able to command a hefty premium if your home is near one. Find out house values using our handy property valuation tool, this will give you an idea of the value of your home before you start relocating to a different area to be nearer a better school.
Also popular are inner-city areas that are protected from heavy traffic, noise and crime. If a neighbourhood is in a quiet prime location yet offers quick and easy access to the city centre, property prices will usually be higher than average. In London, for example, the inflated house values in the city are forcing many people to move to outlying towns and villages, and many of those areas are experiencing a new property boom.
A prime location is often relative to the individual or family, yet there are some amenities and facilities that are universally appealing. Nearby leisure facilities, shops, restaurants and transport links are always likely to attract higher sold prices – as long as such facilities don’t detract too much from the peaceful nature of a neighbourhood. Property developers are good at monitoring new developments in residential areas, as they can often lead to sharp increases in local property prices.
Selling property in popular locations leads to higher property prices in the UK
If your property lies just outside a highly sought-after area, you still might be able to take advantage of higher-than-average house prices. Property hotspots can often price people out of the market, and buyers will often consider compromising slightly – just to be near their preferred neighbourhood. For instance, Chiswick in London is a highly desirable residential area at the moment, but buying a home their is prohibitively expensive for most people. However, buyers may consider nearby Acton as an alternative, as house values there are much lower.
Such is the importance of location, homes in sought-after areas can be greatly inferior to others on the market and still command a premium. Not only do these homes sell quickly, it is usually possible to instigate a bidding war in order to achieve impressive sold prices. House buyers with their heart set on a particular prime location will often be willing to compromise on size, dimensions and features, so selling your house in such an area is often an extremely simple and quick process.
The estate agent’s mantra ‘location, location, location’ may sound tired and cliche, but it has never been more apt. Most property buyers believe that the area in which they live is far more important than bricks and mortar; in fact, many will be prepared to sacrifice space and comfort just to live in a neighbourhood that suits their requirements. And if you are selling in such an area, you can use that to your advantage.
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