Property is one of the most stable markets in the world. In times of inflation or uncertainty, there is fluctuation in market values, but property is usually a safe investment. It is rare to see house prices rise or fall by massive amounts, and it normally calms down fast.
2022 has seen house prices rise at some of the fastest levels in recent memory. If you are looking to sell your property or find out how much it is worth, there are many factors which come into play when deciding this.
One of the UK’s most experienced property investment companies, RWInvest, has put together this list of factors that will affect how much your home is worth. Experts in buy-to-let property, they have over 17 years of experience in the industry.
1. The Type Of Property
One of the biggest factors that will affect the value of your home is what kind of property it is.
There is massive variation in what different kinds of properties are worth, which can mean tens of thousands added or lost to the value of your home. This is partly due to how big different kinds of properties are, but also how expensive they are to build.
Detached houses are the most valuable kind of homes, with the Land Registry’s House Price Index estimating they are worth a national average of £446,435 as of June 2022.
The next most valuable kind of property, semi-detached houses, are far less valuable, with an average price of £276,955, followed closely by terraced houses at £235,294 and finally flats with an average price of £231,860.
2. Floor Space
The size of your home also affects its market value. Ever since the COVID-19 pandemic forced us all indoors for months at a time, having space to live in has become more important than ever.
How large your home is, how many rooms it has and how large those rooms are all affect the market value. Try to find out the square footage of your home, and compare it to homes on the market near you.
Homes with more rooms or larger square footage will naturally have a higher value, as will properties that are being sold or rented as fully or partly furnished.
3. Location
Where your property is located also plays a part in how much your home is worth. Depending on where in the UK your home is, it may be worth more or less money than similar properties in other areas of the country.
For example, Zoopla estimates a semi-detached house in London averages for £850,427, whereas similar houses in Liverpool sell for an average of £221,380.
This can be due to a variety of reasons. The kinds of work available near you, how large your community is, and the crime levels of your area all play a factor in the market value of your home.
Homes in cities are generally more valuable, although country homes can also be highly sought after if they come with land as well as the home.
4. Outdoor Space
Having somewhere to get some fresh air is important to many, so any outdoor space you have in your home is sure to increase its value. Getting some peace and quiet can be a good way to unwind, especially if you work from home.
A garden will make your home far more valuable, and generally speaking the larger the better. A front garden or driveway is also sought after, as many families now have more than one car so need space out front to park.
Making sure it is well maintained and looked after will also increase the market value, as potential buyers will not want to fork out extra money to refurbish a messy or overgrown garden.
If your home is a flat, a balcony or terrace in your building will fill this role, giving you a chance for some fresh air without having to leave your building.
5. The Age Of The Property
How old your home is will also play a role in its valuation. Older homes may be in more need of repairs due to wear and tear, which could drive their value down.
Many young professionals now prefer newer builds such as apartment blocks, as they are quite often in popular areas and have all the benefits of modern building techniques. This means they can initially have quite high property values compared to older homes of similar size.
In comparison, older homes can have more value as they will have settled in and avoid any issues that newer builds can deal with. Although they will have more wear and tear, they are often in good condition and can be sturdier thanks to historical building techniques.
Generally speaking, brand new builds can have higher values, but there are often new-buyer schemes and benefits available to help when purchasing one of these. They will also likely be in new neighbourhoods where dozens of houses are constructed, whereas older houses will be closer to town centres.