What Brings Down a Property’s Value?
As the saying goes, nothing is expensive it is only worth what you are prepared to buy it for. Property values vary across the country and throughout different times of year, depending on demands and market interest.
Some people will have more specific requirements than others, for example some people may be interested in the local schools, activities in the area, being within a community, on a bus route, close to doctors or shops, whilst others are looking for more of a rural setting.
While most homeowners focus on what they can do to increase a property’s value, they often ignore things that can bring down the value of a house. Usually, it can be a case of what you need to maintain or repair, rather than what you can add.
6 keys areas which could bring down your property value:
1 Unfashionable Taste
We’ve all got our tastes, but let’s face it, some people’s taste is ‘unique’.
For example, if you decorated your kitchen in the early 00s and it looks like it was decorated in the early 00s, there’s a good chance it’ll affect your house price. Similarly, if you’re too niche, someone may have to re-do the decor.
2 Japanese Knotweed
Japanese Knotweed was imported into the UK in the 1850s and was favoured by gardeners because it resembled bamboo and grew everywhere. Nowadays, Japanese Knotweed causes various problems for UK homeowners.
Japanese Knotweed can grow up to 10cm in one day, and its aggressive growth means it can target weak structures in buildings, causing structural damage as the weed tries to grow through them. Its roots can be as much as 14 feet deep, and it can lay dormant for up to 20 years.
Local authorities often refuse planning permission on infested sites, and mortgage lenders may not lend on properties that are affected by it
3 Structural Damage
You may notice little things that appear over time, such as a missing roof tile or a crack in the foundation of your home.
While it can be tempting to ignore these problems, it’s always better to deal with them straight away because one problem can often lead to another, which is likely to be more expensive.
Estate agents will include these factors in their official price and will relay any information back to a buyer.
Any structural damage could decrease the value of your home.
4 Pets
If you’re the crazy cat lady who has furballs spilling out of the sides of your sofa, you could get up to 5% knocked off the asking price for your house. Now, nobody is saying you shouldn’t keep pets, but you have to be mindful of what pets you keep and how you keep them.
However, pet odour is thought to be the biggest deterrent for the person valuing your home. Odours can take some vigorous cleaning which can be costly depending on the severity of the smell; you may even require new upholstery and furniture.
5 Issues with the area
The area you live in will affect the price of your house regardless of its features or what you think it’s worth. You may have a five-bedroom home, but if the area isn’t desirable, you’ll lose some of the value of your property.
Here are a few things that can affect house prices:
- Buyer demographics – if the buyers in your area are mainly commuting working professionals and you have a four-bedroom house, you aren’t appealing to that target demographic.
- Housing surplus – if you own a four-bedroom house and a house builder decides to build another 50 four-bedroom houses on the land next to you, you face more competition.
- Closure of facilities – public services, employment, amenities; if any of these services close, it could impact the value of your house as they’re often appealing to buyers.
- Low school ratings – buyers pay to live in areas with good schools because they want their children to have access to the best education. If schools are poor in the area, this could affect the price of your house.
- Environmental pollution – while this wasn’t a consideration until recent years, if you live near a factory or a polluted area your house price could be affected.
- Noise pollution – motorways and train lines are noisy places, and people often want peace when they’re at home. If there’s a new or existing road or train line near your property, it will affect the value of your home.
6 Economic Factors
The banking crisis affected the UK housing market badly, and it still hasn’t recovered. Many homeowners were left out of pocket or with mortgages they could no longer afford; you may have been one of those people.
The housing market works on supply and demand, and if there’s an economic downfall, there isn’t a demand for people to buy houses. And if people aren’t buying homes, the value of your home could decrease.
Interest rates also affect the value of your house, for example, if The Bank of England raises the base rate, bank interest rates usually rise, which means your mortgage payments go up.
Rising payments mean people have to seek out cheaper properties, and if the demand for buying is low, the value of a home can plummet.