where to live

Guild Blog: Location, location, location: a guide to finding your next home

There is one thing that all property professionals agree on, whether they work in commercial property or residential, and it’s that location is one of the most important factors to consider when buying a home. Property gurus around the world continue to emphasise the importance of location because it has such a massive bearing on a property’s desirability and potential investment return.

There are several key elements to consider before making your final decision. If a location has more positive elements, than negative, it will be in higher demand and will have a greater potential resale value in the future.  Essentially, it comes down to desirability and whether buyers would want to live where the home is situated – there is a direct collation between demand and property prices.

Don’t compromise on location

There are a lot of buyers who focus on the property itself and perhaps compromise on where it is situated. However, when it comes to the appreciation potential of the home, this will end up hurting their back pocket. A home can be changed, updated or renovated, but you can’t alter its location. Therefore, it is always better to prioritise location and compromise on the property.

pins in a map

Development

A good location is where there is the potential for growth and development. The area needs to be able to support the demand for property over the long term and subsequently increase its value in time. However, bear in mind that certain developments can devalue a location, such as the construction of a power plant or dump within proximity to the home. Before purchasing in an area, find out about future development plans. Developments such as new industrial sites, new roads, or railways or even industrial activities can vastly alter the price profile of an area.

Investment and commercial activity

National retailers and property developers will do thorough market research before deciding to invest in an area. So, commercial activity, corporate investment and residential and commercial property developments, are all indicators that the area has the potential for strong investment returns. Also, the presence of long-established or well-known brands within the surrounds will indicate that there is a level of confidence that the area has good growth potential.

Infrastructure

The infrastructure in an area needs to accommodate the level of service required by its residents. Neglected areas that experience poor service delivery are not a good option. These areas can be distinguished by the upkeep of the general public land such as the parks, pavements and roads.

cycling in the park

Amenities

Another factor to consider is the quality of the amenities in the area. These include shopping and medical facilities, entertainment areas, restaurants, public services and outstanding schools. Convenience is a highly valued commodity.

Shopping Centre
View of the ceiling of the Hall of a beautiful vintage shopping center in England

Crimes levels

Properties in a high crime rate zone will not hold their value over time. Research from insurer Direct Line revealed that almost half of Brits would check crimes statistics in neighbourhoods they might live in, and 47% would not buy a home in an area with a high crime rate. Over a third said they would expect to pay less for a property in a high crime area.

To check the crime rates in an area, you can visit crime-statistics.co.uk/postcode or police.co.uk.

Transport

Accessibility to transport routes and train stations will also have an impact on an area’s appreciation potential. A large portion of the British population commute far distances every day to get to work, so easy access to public transport is a major consideration.

train station
Train on platform in station in London

The adage of location, location, location is as relevant today as it was when it first appeared in print in 1926. While finding the right home in the right location will require time and research, the future benefits of solid growth in the value of the property will certainly make it worthwhile.

Get in touch to find a home in the right location!

Here at The Guild, we can help you find a home in the right location. Simply contact us today to find out more, or visit our buyers guides on our website.

Guild Blog: The Guild comments on the Autumn Budget

The Guild comments on the Autumn Budget …

Briefly discussing the housing market in his third Budget as chancellor, Phillip Hammond announced that he will extend the cancellation of stamp duty for first-time homebuyers on properties up to £300,000 to first-time buyers of shared ownership properties valued up to £500,000.  He also stated that the measure would be retrospective, so that any first-buyer who has bought a home since the last Budget will benefit.

According to Iain McKenzie, CEO of The Guild of Property Professionals, removing Stamp Duty on all shared equity purchases up to £500,000 is great news for prospective homebuyers getting into the market for the first time, but will do little for those who currently own property and wish to trade up. “Since the abolishment of the stamp duty for first-time buyers, many more people have been able to get their foot on the first rung of the property ladder. In fact, as Hammond announced, the number of first-time buyers purchasing property is at an 11-year high. However, it seems that the last two first-time buyer incentives have been designed to drive the focus away from the traditional second-hand market. Initially Help to Buy and now the incentive to buy shared equity property,” he says.

 

More money for Housing Infrastructure Fund

Hammond also announced that he will give a further £500m to the Housing Infrastructure Fund, which is designed to enable a further 650,000 homes to be built. “The demand for housing in the UK has long outweighed the number of available properties. This further allocation of funds will assist the government in addressing the housing shortage and will create more opportunities for people to become homeowners,” said McKenzie.

 

Housing on the high street

McKenzie adds that another interesting point that the Chancellor made was turning unused commercial spaces on the high streets into residential housing, again in a bid to ease the burden of the housing shortage, as well as rejuvenating the high-street and creating more foot traffic past high-street businesses. An amount of £675 million will be put into a future high street fund to redevelop un used areas and help the high streets adapt and increase interest for local businesses.

 

Lettings relief limited

In the Budget, Hammond said that from April 2020 lettings relief would be limited to properties where the owner is in shared occupancy with the tenant. “The lettings relief is often used by people who have difficulty selling their home, whereby a maximum of £40,000 of gain per owner is exempt if the property is rented out. It seems that small landlords are being targeted again with the reformation of the lettings relief, as it is only available where the owner and tenant are in shared occupation,” adds McKenzie.

 

International investment

Permanent tax relief has increased from £200,000 to £1 million for 2 years to encourage more investment. “With many international property investors adopting a wait-and-see attitude towards the UK before the Brexit decision, a tax relief could be a great incentive to allure them back in and encourage further investment in the country. However, the extent of this will remain to be seen,” said McKenzie.

 

“Overall an encouraging Budget for housing in the short term, but the real question remains. What is the government’s long-term strategy? More still needs to be done to encourage transactional volumes and price growth in all sectors,” he concludes.