What are the main factors, which affect house prices in my local area and why? Essay
In this investigation, I am going to look into the main factors of which determine the price of a house such as location, size, accessibility and the interior decoration i.e - What are the main factors, which affect house prices in my local area and why? Essay introduction. fitted kitchens and wardrobes.
The prices of housing in my area are very different, Harold wood costs much less to move to than Gidea Park, but yet they are no more than a mile apart. I am going to investigate why this is so as well.
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For example, a three-bedroom semi detached house in Harold wood cost ï¿½128,000 and a similar house in Gidea Park costs ï¿½235,000. Why it costs more to live in Gidea Park is something I am intending to find out.
Throughout the 1980’s and 90’s, Havering has seen house prices rocket, along with most of southeast England and some parts of Manchester. One thing that affects these prices is the demand for this area of England, due partly to job opportunities and rail links into London.
Other parts of Havering, haves seen price increases, but not as much as those such as Romford, Hornchurch, Upminster and Gidea park. This is because there is no greater demand for these areas like Collier Row and Harold Wood.
Location is very important in economics. Businesses have to take account of the area surrounding them, this is the same for houses. No one likes to live in an area with a high crime rate, or with a reputation for being a ‘rough’ area.
The locations of the two houses I have chosen to look at are fairly different. Harold Wood has a reputation for being a rough area at night and has a fairly high rate of crime, whereas Gidea Park is thought to be not as rough as Harold Wood and more ‘upmarket’.
Most people like to move to areas where it is thought to be safer at night and a reasonable place to live i.e. by the houses surrounding it and the reputation of the area.
Reputation is important in the real estate business, as it can knock thousands of pounds off the price of a house. In the centre of London (Docklands for instance), it is very expensive to live. This is because there isn’t much room in London to build houses, and if you work in London, it’s much easier to get to work, and probably much quicker. Demand also plays a big part in house prices, as if the is more demand for a certain area, the cost of moving there will become much higher despite many homes being a lot smaller.
The size of a house can determine it price, as people are more likely
to pay more for a 5-bedroom house than say a 3-bedroom house. That is common sense.
There is one example where people will pay more for a smaller house is if the larger house is situated in the north of England i.e. in Newcastle or Manchester and if the smaller house was situated in London. But in this case, both the houses are the same size.
The size of the garden also affects the price, as the house in Harold Wood is only 26 yards long whereas the house in Gidea Park has a garden, which is 96 yards long. The garden could affect the price of the house by upwards of around ï¿½10,000 this is because certainly buyers with young children like a big garden where their children can play and where they can decorate to their taste. A swimming pool in the back garden could decrease the value of a house by up to ï¿½10,000 because people often don’t want to maintain it.
Whether or not the house has a garage will also affect its price. In the case of the comparison of between the two houses, only the house in Gidea Park has a garage on site. The house in Harold Wood does have a garage however it isn’t on the site of the house. This also could affect the price of the house at upwards of around ï¿½5,000 this is because people often like somewhere where they can park their car, which will be safer than outside the house, or often people can use it for extra storage or room.
Whether the driveway is paved or not will also increase the value of the house by up to ï¿½5000 this is because it would allow an extra parking space for at least one more car depending on what the occupant has done.
How easy it is to get to a station or how far it is to the nearest bus stop does affect the price of a house. If it’s easy to get to a station whether underground or main line then it is more likely to sell as there probably is more demand for it.
Whether or not there are local shops within walking distance will also affect the price, as people are less likely to want to walk for a long time to get to local shops.
If the house is situated on a main road this will also affected the price, as people are less likely to want the traffic outside their driveways and the noise of a busy road at night.
Being able to have access to a range of good standard schools will also make a big difference especially if a buyer has children of secondary or junior school age.
In the case of the two houses I have chosen to study both houses have access easy ability to local shops and stations. Both houses are situated in an area where there is a school near by for the house in Harold Wood the nearest school would be Redden Court school, and for the house in Gidea Park it would be Royal Liberty which is an all boys school however.
How well decorated a house is, can dramatically affected its price. Fitted kitchens now days are more or less essential if you are trying selling your house. A fitted kitchen could increase the value of a house by up to ï¿½15,000.
Double-glazing windows will also affect the price of a house quite dramatically especially if you live on a main road as these would block out most of the noise from the street. Double-glazing could increase the value of a house by up to ï¿½15,000 as well.
Other interior decoration such as fitted wardrobes and newly decorated rooms will also help increase the value of a house. This is because it would give people the option of either taking out the fitted wardrobes and replacing them with wardrobe of your choice or keeping them.
Although it is hard to compare the interior decoration of the two houses as we only have a picture of the front of the houses and not the interior, so in this case I can’t comment on the comparison of the two houses.
These graphs are the results of a survey I carried out. I asked five different estate agents to order eight factors, which affect the prices of houses. The eight factors were transport links, schools, surrounding properties, crime rates, area, other facilities such as libraries and shops, parking and other like “snob value” and postcode. Each estate agent I asked ranked these categories in importance, 1 represents no great affect, and 8 represents’ a great effect on the price.
The results of my survey show that every one of the estate agents I asked all ranked surrounding properties as the main factor that affects the prices of houses, I think this is because people are less likely to buy a home if there is a derelict house near by.
Most estate agents ranked other factors such as “snob value” and postcode as the least or second least important factor. However Susanne Blackledge of Haart estate agents said, “The postcode is very important in the real estate business. Take the South Hornchurch Rainham scenario, people in who live in Hornchurch call it Rainham, but people who live in Rainham call it South Hornchurch.”
The estate agents I asked in my survey had similar views over how important the factor of schools is. I even remember the Estate agent from Beresfords laughing at the fact that the estate agent I asked from Haart ranked the factor of schools as the 6th most important factor.
I was surprised however that all of the estate agents I asked all ranked transport links as the second most important factor. I thought this wouldn’t be ranked more important than the schools, crime and area factors.
What are the main factors that affect house prices in my local area and why?