What Affects House Prices?
Interest rates and economic growth are just two of the many important factors we need to consider when making important decisions about the housing market. But as much as we may rely on these two indicators, there are other less obvious aspects that provide additional insight. At We Buy Any Home, we know how crucial it is to gather as much information as possible on the area you’re looking to invest in – or move away from. The process can be long and time-consuming, but it’s always better to be safe than sorry. Using London as an example we explore three factors that can affect property value that you may not have considered.
Is your property on a flood plain?
In the last few years, UK floods have had a disastrous effect on homeowners and residents. Not only are they burdened with the inconvenience of dealing with the floods but the financial costs too. According to the Association of British Insurers, the average cost of flood damage lies between £20,000 to £40,000. For those who think they are safe because they don’t live near the coast, although the last flood in London occurred in 1928, it isn’t impossible for it to occur again. After witnessing the severity of the floods in other parts of the UK, prospective buyers should be cautious about how they could be affected. If your property is in a flood zone and at some point, you decide to sell, you could see a significant decrease in its value.
New developments in your area
In the early noughties, a typical 3 bedroom flat in King’s Cross would have cost around £200,000. Six years later regeneration in the area has helped push that value up to around £600,000. Two years before the development of White City’s Westfield Shopping Centre in 2008, the asking price for a three-bedroom property in Shepherd Bush was £575,000. By 2015 this figure soared to £1,350,000. In London, the next big development capable of similar property value increases is likely to be the new Crossrail – one of Europe’s largest infrastructure projects to date. The cross rail has already created additional value to the homes along its route, even though full services aren’t scheduled to begin until 2019. Look at upcoming developments in your area to help you weigh up whether it would be beneficial to sell and sell quickly.
How many years are left on the lease?
The number of years left on a leasehold property can drastically affect property value. For example, a house with 90-100 years left will significantly decrease the resale value. Some mortgage lenders won’t even lend to home buyers on such a short lease. Don’t be fooled by the cheap price for some leasehold properties, if there are only 90-100 years left on the lease you could end up paying much more in the long run. If you do find yourself in a situation where you have a short lease, you should make it a priority to extend it. It needs to have been originally leased on a long lease and you need to have owned the property for a minimum of two years. If you are unable to extend the lease, you may want to get out before the lease depreciates the value of your home even further. Speak to our expert team at WeBuyAnyHome. We pride ourselves on our ability to provide a fast and honest house sale service. Extending the lease can be very expensive and should be factored into your expenses. While there are general rules to lease extensions there may be additional rules that apply to your case specifically. We advise that you consult with a professional to help you extend the lease.
If you’re looking to sell your house, WeBuyAnyHome will provide you with an offer within 7 days!