IntroducerToday has reported that the main factor currently affecting UK house prices is location. A house in London for example is valued at nearly double the price of similar homes in Wales, according to Nationwide, the leading lender in the country.
This is reiterated by the chief economist for Nationwide, Martin Gahbauer. He suggested that houses in the best neighbourhoods tend to command prices of nearly 50 per cent more than those in average neighbourhoods in the same city.
Another significant factor in property value is floor space. According to the IntroducerToday report, a 10 per cent increase in floor space amounts to a 5 per cent addition to the value of a property.
When an extra bedroom or bathroom is added in a loft conversion, the value of the property can rise by up to 20 per cent. When a 13 square metre double bedroom is added to a house, the value can be boosted by 11 per cent.
When these figures are taken into account, it is best for buyers to invest in a better location than in a bigger property. The owner can then increase the property?s value even further by adding rooms and bathrooms.
The current property market climate is favourable for buyers who wish to invest in the highest value possible for properties. Furthermore, recent reports in the news have suggested that the market is slowly but surely recovering.
Buyers who therefore want the best return on their property should invest in desirable locations while prices are still affordable. They can then increase the property size to gain a bigger return once the market has recovered.
