Old is Gold, Part One
New Build? Modern? Old? Ask people what type of property they prefer and you’ll get a range of answers based on their own preferences. But what is actually most valued by the market? Developers often assume a ‘New Build premium,’ but very few developers or agents could put their finger on exactly how much that might be.
Looking across the country at over 9,000 different areas, we found the following data:
Edwardian properties were actually the highest priced properties on the market, averaging over £725,000 — even higher priced than Georgian houses at £715,000.
It can be expected that older houses would be higher priced overall than newer buildings, as the older properties are more often located in the centre of towns and cities, where property values are typically higher due to the access to other amenities. Many ‘modern’ properties were also built during periods of time in the UK when both aesthetic design and resources were often limited.
Taking into account the location of the properties in question, we found a more informative set of numbers. ‘Modern’ properties tended to trade at par with the surrounding areas, whilst both Edwardian and Victorian properties attract a small premium.
Most interestingly was the 10 percent premium attached to New Build properties across the UK, a figure which changes from area to area but provides property developers with a good level of potential profit above the price of the market.
Georgian properties attracted a near 15 percent premium to the market, likely in large part due to their high ceilings, grand entrances, basements and larger bedrooms.
To read the second part of this article, check out Old is Gold, Part Two.
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Originally published at realyse.com/blog/post/georgian-property-value-new-build.