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Price Premiums for UK Properties Near Amenities Hotspots

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    Is It Worth Investing in Properties Close to Amenities Hotspots?

    Yopa conducted new research analysing house prices of homes for sale in England. These homes are conveniently located within walking distance of town centres.

    Yopa compared the prices of these homes to the average prices in the surrounding areas. This comparison helps to gauge the premium that buyers are willing to pay for easy access to shops and amenities. Liverpool buy-to-let properties are a good example highlighting why its an important factor when looking for a property to invest in.

    Let’s look at that data in more detail.

    Discover More: Is buy-to-let a good investment? Check out our guide on different types of property investment for more information.

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      LIVERPOOL, ENGLAND - APRIL 3, 2017: People walking in the Liverpool One shopping centre. The place is the largest open air shopping centre in the United Kingdom and the 5th largest overall.

      What Are the Price Premiums for English Homes Close to Amenities?

      The data shows that homebuyers prioritise location, often desiring homes within a short walk of shops and amenities. However, buying such a home comes with a notable price increase.

      In England, the average price for a home near a town centre is £380,025, which is 27.6% higher than the current average house price of £297,735. This means buyers are willing to pay an additional £82,290 to live close to a town centre.

      As a buy-to-let investor, you may need to pay more for properties close to amenities hotspots. However, these properties should also command significant rental prices due to convenience. If you invest in new builds close to amenities hotspots, such as an off-plan property like the Heaps Mill project in Liverpool (right next to the Liverpool One retail zone), you may see those rents escalate further, enhancing your yield and capital appreciation.

      Find Out More: Dive into some more of our handy guides, such as our pages on how to buy multiple rental properties and where to invest in 2024.

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      What Does Rightmove Say About Buyer Activity in the UK Housing Market?

      A breakdown of the data shows that London is the main driver behind this high premium. Homes near sought-after high streets and shopping areas in London carry an average price of £2,405,712, a substantial 378.6% increase (£1.9 million) compared to the city’s overall average house price of £502,690.

      Outside of London, the premium for walkable access to amenities is lower but still significant. In Yorkshire & Humber, for instance, the regional average house price is £204,754. However, homes within a short walk of town have an average asking price of £248,449, representing a premium of 21.3%, or £43,695.

      Similarly, in the West Midlands, the short walk premium stands at 14.2%, amounting to an additional £34,448. In the East of England, buyers looking for proximity to town face a 13.7% premium (£46,407) on top of the region’s average price.

      The South West follows with a 13.6% short walk premium. The North West (9.3%), South East (6.5%), North East (3.3%), and East Midlands (0.9%) also offer considerable premiums for homes close to amenities hotspots.

      Verona Frankish, CEO of Yopa, commented: “Homebuyers come to the market with varying requirements, but the vast majority will often value a number of core features and living within close proximity to a good range of amenities is often one of them. As such, homes that are located within a short walk of a town centre command a hefty price premium.

      “It’s also fair to say that the closer to the town centre you search, the less you are likely to get for your money, so not only are buyers willing to pay more for the convenience, but they are also paying a premium for a comparably smaller property. We would advise all buyers and sellers to research what other similar homes in the same area have sold for in the recent past, therefore giving you a good guide by which to judge your own sale or purchase.” Why not read some of the latest real estate investment tips for 2024!

      For more investment insights, take a look at some of our buy-to-let area guides, such as:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.