16 Oct What value in a road name?
ROADS, STREETS, CLOSE OR SQUARE – WHICH IS THE MOST POPULAR AND DOES IT AFFECT PRICE?
We are all aware that in general terms apartments are less expensive than houses, that garages, gardens, or being close to a good school can add value to the price of a property and that certain areas are considered more ‘sought after’ than others. However are certain street addresses more common than others, and does the price of a property vary whether you live on a road or a street in a close or on an avenue?
THE POPULARITY OF ROADS
Across the UK there are just under a quarter of a million miles of road (246,500 miles) of which over half are ‘U’ roads – unclassified roads, typically residential streets or rural lanes. It is on such roads that the majority of UK residential properties are located. (source: Department of Transport, 2016 and 2017).
Analysing Land Registry data shows that close to one in every three properties sold across England and Wales to date in 2017 have taken place on a “road”, while four in every five properties sold have taken place in locations with one of just twelve common suffixes. When it comes to naming where we live, it looks like we’re pretty consistent in the choices we make:
THE VALUE OF A NAME
The average price of a property sold on a road to date in 2017 is £301,950, however, there are premiums purchase properties elsewhere. To purchase on a “park” expect to pay a 9% premium while to purchase on a “place”, “hill” or “garden” could add thousands to your purchase price. Even owning a property with no street address as such, just “The XXX” indicates your property will sell for over £10,000 more than one on a “road”
At the top end of the budget, just 0.5% of all properties sold this year have been on a “square”, where the average price is £462,895, a stunning 53% more expensive than a “road”. Perhaps, not unsurprisingly, over 30% of all purchases on squares have been across London. These are the most expensive locations across the capital, with the average price of a property just shy of £1 million at £942,966.
Between street suffixes, there is considerable regional variation. Take “road” as the most popular. Across London over two in every five property purchases, this year have been on a “road”, compared to just one in six across the North East.
A higher proportion of purchases on “Gardens” and “Squares” take place in the capital while the North West accounts for a fifth of all sales on “streets”, with “terrace” also more common I in northern regions. The South East tops the league for the volume of sales in locations named “Place”, “Way” and “The”, the South West for “park” sales. More properties across Wales than any other county do not have street names per-se.
WHERE ARE DIFFERENT NAMES MORE PROMINENT?
AND SO WHAT?
With the number of new build starts and completions at their highest levels in a decade, over the coming years, there will be numerous new developments that require an address. While many local authorities and developers ask for local suggestions, it is perhaps also worth considering whether there is any financial gain for choosing any specific name.
If you’d like to talk to us about buying or selling your next house, why not give us a call on 01325-776424.