How pedestrianisation and parking permits affect house prices
Everyone knows that investing in bricks and mortar is a good idea. But what you might not realise how is how much effect little extras can have on the value of your home. One of the most prominent examples of how factors outside the home can influence its worth is parking.
With almost 30 million car owners in the UK and that number growing by around 500,000 a year, having a parking space either outside your home, under it or in a designated car parking area can be huge.
In fact, it could be the single biggest factor (outside of the house itself) that influences a buyer’s decision. This is in large part due the decrease in the amount of free parking across the UK, and specifically in Norwich. The rise of resident parking permit has two root causes, and depending on your opinion, one may be more significant than the other.
Firstly, residents who live in certain areas were becoming increasingly frustrated by the lack of available parking space. With shoppers and employees increasingly unwilling to shell out for expensive city centre parking, the roads around the centre were becoming full of non-resident parking, The resident permit therefore protected the parking rights of the people that lived there.
However, more cynical people have become inclined to think that charging residents to park in their own street is a clever way for the council to make a tidy sum of additional income for not very much investment.
Having your own off-street parking could therefore increase the value of your property by as much as 5%, which would be £10k on a £200k property. Not having to deal with permits is obviously a big deal for some people, especially in the city centre. It could also be a possibility to rent out our parking space for an additional income.
Another issue involving cars is pedestrianisation. There’s no doubt that removing cars from the streets in certain areas has improved safety. But as Alan Partridge pointed out in the BBC comedy series, not everyone is in favour of it in the city centre. If you live in a pedestrianized area, this obviously will affect parking and therefore the value of your home. However, there are benefits to living in a car free zone. And if you’re investing in a commercial property, these benefits could be magnified further.
If you’d like to know more about how even minor issues can make big differences to property profits, then get in touch with a member of the Agile team.