The process of choosing an area to live in London is quite demanding. Every location has something unique and tempting. Though, not all of them fit into your pocket. Then, what to do? Well, the simple trick is to find the factors that affect the price of houses in London. Understanding these factors will enable you to shortlist the places as per your requirement and complete the search of your house quickly.
Now, the housing market in London is quite volatile. Numerous factors affect the price of real estate in London. Demand and supply are inevitable and are affected by various other aspects, which are mentioned below. Other than that, this blog persists some more important factors like location, surroundings, etc.
London has some exquisite boroughs like Ealing, Islington, Camden. You can find out prices for homes in Ealing, Islington, Camden, and a few more locations to compare the suitability of these areas as per the factors given below. Let’s check out the factors affecting the pricing of houses in London.
1. Connectivity & Transportation Aids
The price of the property is highly influenced by the connectivity of the area with the rest of the city. For instance, the road links and the availability of regular public transportation would enhance the rate. As per research by Lloyds Bank, the places having proximity with amenities like Crossrail stations are likely to observe a surge in the pricing of the property in that region.
2. Location Factors
The location of the house in London plays a major role in affecting its price. Location is valued not in terms of just demographic features but also in the context of proximity with various amenities and facilities.
If you choose a location near Charing Cross station or within proximity to any of the city’s central locations, the price of the property will certainly be high. Also, in case the location is equipped with various amenities, then the prices are going to be more.
3. Entertainment & Leisure Facilities
If you are finding a house near a 5-star Michelin restaurant, be ready to pay an extravagant price. The rate surges in terms of percentage that is determined by the popularity of the amenities surrounding the area.
Not just hotels and restaurants, but proximity to supermarkets and other leisure facilities will also increase the price of the houses in the area. On the other hand, if the location is deprived of these leisure facilities, the rate will be lower.
4. Surrounding Culture & Community
The surrounding area and culture also affect the price. Having sports complexes and other community centres besides the property will increase the value. Properties in areas such as Ascot, Stratford, Wembley, and Twickenham are considered to be posh areas due to their linking with various sports institutions.
Also, if the areas are reputed for having a cultural atmosphere, the value of the house will be high. This also means that places with sceptical reputation will offer affordable pricing.
5. Demand & Supply
The demand and supply largely affect housing prices. Boroughs like Bexley, Bromley, and Kingston are leading on the list of high rates due to extensive demand.
Also, demand and supply are shaped by the purchasing capacity and financing options available. Hence, if market conditions are well and people have increased confidence, the pricing will be accordingly affected.
6. Growing Prospects
The price of houses in an area also relies on the prospects of growth in that specific area. If the borough you have chosen is planning to tempt businesses and attract the mainstream of the city, then the pricing will also increase.
It happens due to an immediate surge in demand for houses in the area that takes place because of increased employment opportunities. Growing tech-firms in Shoreditch is a clear example of this phenomenon.
7. Major Developments
The studies suggest that massive developments in an area usually promote a surge in the price of properties. Many regeneration projects not just enhance the quality of life in the area but also opens opportunities for people.
Ealing, Newham, and Wandsworth are explicit examples of such developments. Though these regeneration projects affect the value of the property; if you buy houses before completion of the project, you will have the option to invest in a profitable deal.
8. Investments by Popular Businesses
If famed companies and developers are starting their venture in the area, it would certainly affect the pricing of the area. The boroughs with such investments are considered to be listed among the premium ones. As these investments would enhance the demand due to better employment opportunities, the price of the property is definitely going to increase.
Now you must have got the right idea of factors that affect the prices of houses in London. Though amenities and connectivity play a vital role in determining the rate, you should not forget that type of property can also be a contributing factor.
The pricing of houses in London as per the area relies mostly on what you want. Are you willing to live in the middle of the city or want some happening vibe in your alley? The choice is always yours. So, check out the most suitable locations and find the right one for you.