House Price Influences: Fact or Fiction?
3 minute read
There are all sorts of factors that have been touted as the alleged causes of house price fluctuations. For those living in London, the proximity of a Tube station has a marked impact on the price you’ll pay. In all areas, the quality of the local schools and the abundance of green spaces will push house prices up and down. Over the years there have been a number of weird and wonderful reasons cited for the fluctuations in house prices, but are they true?
The Proximity of a Waitrose
Figures compiled by Lloyds Bank have shown that living near a Waitrose supermarket, or any supermarket for that matter, can have a significant impact on the value of your home. The research shows that living within a stone’s throw of a Waitrose can boost the value of a property by nearly £40,000. The ‘Waitrose effect’, as this phenomenon has been coined, is not exclusive to the upmarket supermarket, but a nearby Waitrose does lead to the largest rise. The 2016 study shows that the price of properties near Sainsbury’s or Marks & Spencer typically rises by an average of £27,000, while those near a Tesco are worth £22,000 more than homes in the wider area. In fact, even living in proximity to a discount supermarket, such as Lidl and Aldi, can add £3,926 and £1,333 respectively to the value of a property. Fact or Fiction? – Fact
A Shortage of Bricks
In August this year it was suggested that a shortage of bricks had contributed to the rise in house prices over the last decade, with 1.4 billion more bricks supposedly required to meet the demand. This shortfall in bricks would be enough to build 740 Big Bens, 40 Tower Bridges or all the houses in Leicestershire. However, the findings of the research, conducted by the National Association of Estate Agents (NAEA) and the Centre for Economics and Business Research (Cebr), were refuted by brickmakers. The chief executive of the Brick Development Association (BDA), said: “We can report with absolute authority that there is no shortage”. This is backed up by figures from the Office of National Statistics, which shows that stocks of bricks are 39.9% higher than the same period last year. Fact or Fiction? – Fiction
A House with a Name
If you’ve ever found a house with a name more endearing, you’re not the only one. Research by the website globtrix.com found that a house name, like popular choices ‘Orchard House’, or ‘The Willows’, can add up to 5% to the value of a property. One in 14 people surveyed actually said they would be willing to pay a premium for a house with its own name. Fact or Fiction? – Fact At Just Mortgage Brokers, we only deal in the hard facts about mortgages to help you find the right deal. To discuss your situation with one of our advisers, please get in touch with our team today. Image source