Neighbors influence the value of a property, says Churchill Insurance
People planning to move up the property ladder may wish to ensure their home is in the best condition it can be to ensure they get a good price for their bricks and mortar.
However, new research from Churchill home insurance has suggested people might also need to consider the condition of neighboring properties when thinking about the value of a house.
Indeed, a study of 104 estate agents carried out on behalf of Churchill home insurance revealed 88% agreed a well maintained neighbouring home could increase the sale value of a property.
The average amount surveyed estate agents believed a neighbouring home could add to the value of a property was 12%.
With Land Registry data from November 2012 suggesting average house prices in England and Wales stand at £161,480, that means another 12% could add £19,379 to the sale price of a property.
Head of Churchill home insurance Martin Scott said: “Whilst many householders will recognise that the condition of surrounding properties can influence curb appeal, the study shows that the upkeep of a neighbouring property could affect the sale price of a home by thousands of pounds.”
On the other end of the scale, however, 98% of sampled estate agents also believed a poorly maintained or unsightly neighbouring property could negatively impact on the sale price of a person’s home.
The Churchill home insurance study found the average amount surveyed estate agents thought a poorly maintained neighbouring property could reduce the sale value of a home by 13%, knocking £20,994 off the cost of an average home worth £161,490.
Still, Mr Scott summed up by saying: “Relatively minor issues such as maintaining gardens and keeping external paintwork in good condition could increase property values in the area generally, putting pounds in homeowners’ pockets when they come to sell.”