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How much do top schools add to a property's price?
In this month's edition, we reveal how much does the presence of a top school add to the price of a property.
We also look at the success of the Help To Buy scheme, analyse what turns potential buyers off when viewing a property and present five unusual factors that affect the price of your home.
How much do top schools add to a property's price?
If you and your family have ever looked for a new home, there is a good chance you’ve taken a look at the local schools so you can make an informed decision about your purchase.
If you’ve got young children then living in the catchment area of a good school is without a doubt a bonus, but have you ever considered how the top schools impact the price of your home or how much buyers are willing to pay to be near one? New research from Santander Mortgages has sought to answer these questions.
According to their data, homes located in the catchment area of one of England’s top 100 state secondary schools, receive a 42% boost to their value.
This price premium even applies at a primary school level, as homes in the catchment area of a top 1000 state primary school are valued at 8% more than homes in the surrounding areas.
It appears that parents are happy to pay a little extra for a home near a top school, with Santander’s research finding that they would be willing to pay almost &27,000 more than the average price of a home in the UK.
What is more interesting about these statistics, is that top schools rank far above any other local amenity, such as low crime rates or good transport links, as buyers are only willing to pay 11% and 10% for these benefits.
The research also found that 30% of parents with children of school age are considering finding a new home within the next 2 years in order to secure their child a place at a top school and just under 1 in 4 parents would even consider downsizing to send their child to a private school.
Managing Director of Mortgages at Santander UK – Miguel Sard - offered his comments on the results of the research, he said; “Living in the vicinity of a top-ranked school carries a significant house price premium. If families are looking to move into a catchment area specifically to boost their chances of getting into an elite school, they can expect to pay a hefty price
“It is important when considering purchasing a property that people understand the true costs as the house price is just one of many. Stamp duty, solicitors’ fees and moving costs mount up. Parents are prepared to sacrifice a lot to give their child the best start in life and given these costs, it is important to find a mortgage lender that offers the best rate for you to ensure repayments are manageable, and the buying process is made as smooth as possible.”
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What are the biggest put-offs when viewing a property?
Over 420,000 helped onto the property ladder with Help To Buy
Five unusual factors that can affect the price of your house
Over 420,000 helped onto the property ladder with Help To Buy
There has been plenty of talk over recent years surrounding the affordability issues within the UK property market.
While house prices continue to rise and renting long-term becomes more common among the upcoming generations, it is not impossible to buy a home in the current market and it appears that the Help to Buy scheme has helped many across the line.
New figures released from the Government have revealed just how much of an impact the Help to Buy ISA’s have had on the market, after only being introduced a few years ago.
According to reports, over 1.2 million people have opened a Help to Buy ISA account and there have been just over 420,000 completions by buyers who are using one or more of the schemes set up to help them onto the ladder.
An estimated 365,400 first time buyers are now homeowners, claiming an average bonus of &800 through these schemes.
Help to Buy purchases have been popular throughout the country as a whole, but the North West has seen the most activity, showing over 20,000 completions in the last 3 months alone.
The scrapping of stamp duty in 2017 has also been a bonus for prospective homeowners, saving many first time buyers anywhere up to &5,000 on the purchase of their home and a total of &284 million has been saved so far.
In addition to this, there are also Help to Buy Equity loans. This scheme allows buyers to borrow 20% of a home’s value to put down as a deposit, as long as they can provide 5%. Help to Buy Equity loans have given just under 170,000 people a leg up onto the property ladder since their introduction.
Economic Secretary to the Treasury – John Glen – spoke on these figures, he said; “We’re helping a new generation of first-time buyers realise their dream of owning a home. Help to Buy continues to be hugely popular across the UK, with 420,000 people getting support so far. And with our stamp duty cuts and the lifetime ISA, we are delivering for first-time buyers.”
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How much do top schools add to a property's price?
What are the biggest put-offs when viewing a property?
Five unusual factors that can affect the price of your house
What are the biggest put-offs when viewing a property?
When trying to sell a property we all do our best to make sure our home is in tip-top shape and that we present it in the best light possible.
The little things can go a long way when it comes to selling a home and what may look like minor issues to you could be deal breakers to a potential buyer.
ScS recently surveyed several prospective buyers with the goal of discovering the biggest turn-offs when viewing a property.
Whenever you’re selling a home, making each room feel as spacious as possible is key to the sale, so it comes as no surprise that the number 1 turn off is clutter or obvious lack of storage, with 41% of survey participants stating that they would be put off a property which is clearly lacking for space.
Not very far behind at all and chosen by 40% of participants was pets, bad smells and general mess, as it appears that the thought of lasting damage from pets and odours is a big enough deal breaker for some buyers.
Continuing the theme of wear and tear and chosen by 36% of those who took part in the survey was old/damaged carpets, flooring can be quite costly to replace so it is understandable that a worn-out rug could ruin a viewing.
The kitchen is arguably the most important room in a home when it comes to a viewing as if it’s not to the buyers liking, it's easily one of the most expensive rooms to renovate. This holds true according to the results of the survey, as 35% of people said they would not buy a home if they were not a fan of the kitchen.
Coming in at 5th place was being near the main road, as one-third of us (33%) prefer a home in a more secluded spot away from noisy traffic.
The study also found which features were considered ‘must-have’ with 57% searching for a home with the right number of bedrooms, 40% looking for off-street parking, 32% wanting a well-maintained garden and a similar number of participants looking for new windows and a new kitchen, chosen by 31% and 30% respectively.
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How much do top schools add to a property's price?
Over 420,000 helped onto the property ladder with Help To Buy
Five unusual factors that can affect the price of your house
Five unusual factors that can affect the price of your house
It is common to spend the weeks and months prior to placing your property on the market trying to get the house up to a suitable standard so that you can add as much value as possible.
You might have cleaned all of the carpets – multiple times – given a few rooms a new coat of paint and even fixed those broken slabs of pavement on the driveway, but whilst all of these repairs and refurbishments can help you get the most out of your property, there are some other factors that come into play when selling your home – and some of them can be quite unusual.
Street name: The name of the street can have more of an impact than you realise. Research suggests that ‘boulevard’ and ‘avenue’ will generally sell at a higher price than a home located on a ‘street’, ‘court’ or ‘terrace’. This effect can also work in reverse, with homes that are unfortunately located on streets with names that could be considered rude or quirky, as buyers may feel embarrassed investing in ‘Crotch Crescent’.
Trees: Buyers are prepared to pay more for a property with trees nearby due to the privacy and reduction in noise that they offer. Removing trees from near your property could see you lose 5% of the value of your property.
House number: Some studies have shown that a property with an even number can fetch a few extra hundred pounds than a property with an odd number. Unsurprisingly, the number 13 can also play a part in affecting the value of the property. Although some would consider it to be silly superstition, triskaidekaphobia (the fear of the number 13) is not uncommon in the property market. Some streets completely exclude the number 13, out of fear that it will affect the value, and there is even research to suggest that people avoid buying a home on the 13th day of the month.
The closest supermarket: It’s always great to have a home that is close to plenty of shops that allow you to pick up all of your amenities. You may be surprised to find out that the shop in which you are closest to can influence the price of your home. According to research performed by Lloyds Bank, houses closer to a Waitrose can see a rise in value of &40,000, whilst properties near a Tesco can see property values rise by &22,000. At the other end of the scale, a property near an Aldi could see their prices rise by &1,300.
Waterways: Research performed by the Canal & River Trust found that homes near to a canal or river saw their values boosted by 15-25%. The local economy also receives a boost from waterways due to the types of businesses that tend to open near them.
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How much do top school's add to a property's price?
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Over 420,000 helped onto property ladder with Help To Buy
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