Monday, June 24, 2024

Can the right school really add £21,000 to your Property value?

The property market is a constantly evolving entity, and one which continues to fluctuate in line with wider economic and social trends. You would not know this if you were to look at the existing property market in the UK, however, which has enjoyed almost continuous growth over the course of the last 18 months.

There are signs that this trend is beginning to reverse, however, as the rate of house price growth first began to decline during the final quarter of 2015. Even more significantly, prices began to fall during April, as uncertainty over Brexit began to take a heavy toll on the property market.

Are we approaching the Perfect storm in the UK Property Market?

House prices declined by 0.8% last month, and while some may argue that this is only a temporary state of affairs it may also be indicative of a longer-term economic transition. More specifically, as prices have grown beyond a point that the market can bear and a recession has begun to loom large over the UK economy, home-owners are braced for a decline in the value of their property.

This will create something of a predicament for home-owners, many of whom will be compelled to take the initiative and add value to their own properties. They will also be wary of spending too much in a depreciating market, however, creating the need for a delicate balance between investment and return. Ultimately, this may create a perfect economic storm that has the potential to undermine even the best real estate investment.

How the right school can add huge value to your home

Fortunately, there are actually organic and cost-effective factors that can instantly add value to your home. Research has suggested that houses based in leading catchment areas throughout the UK can command a price point above the national average, for example, with figures from the Land Registry estimating this increase at £21,000.

Properties based near the top 100 state schools are worth 25% more on average than those further afield, so it is worth checking which catchment area your home falls in when placing it on the market. While these figures fluctuate depending on the precise rating of the school and its past performance, it is the type of factor that can help to optimise the resale value of a property without forcing vendors to risk their hard earned capital.

The Last Word: Helping you to decide whether to twist or stick as a home-owner

Given the changeable nature of the property market, this and similar factors may prove decisive when choosing whether or not to sell your home in the existing climate. Along with the accessibility of home-owner finance and the type of bad credit loans featured here, there is a clear opportunity for some owner-occupiers to optimise the value in their properties and sell before the market begins to depreciate noticeably.

While houses based in a popular catchment area may boast a significant advantage in terms of value and demand, it is important to make a couple of considerations before listing your property. Your property must be suitable for the necessary target audience, for example, as houses with three or more bedrooms will instantly be more appealing to young families who are actively looking in a positive catchment region.

Families are also among the most price sensitive consumers in the market, so you will to set a viable price point that offers value for all parties involved.

Elliot is the Editor at ABCMoney. He manages a team that writes and contributes to many leading publications across a number of industries.

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