Everybody needs good neighbours: They add £19,399 to the value of your property
12th March 2013
- 88 per cent of estate agents think a well maintained home next door will increase the sale value of a property by an average of 12 per cent (£19,400)
- Unsightly neighbouring homes reduce the value of a property by an average of 13 per cent (£21,000)
- Broken or boarded up windows named as the number one neighbouring property price killer
A new study (1) from Churchill home insurance reveals that 88 per cent of estate agents think a well maintained home next door will increase the sale value of a property. Estate agents estimate that well maintained and attractive homes surrounding a property have the potential to increase the sale price by as much as12 per cent - equal to a staggering £19,400 (2) at current market value.
However, an unsightly or poorly maintained neighbouring property could reduce the price of a home by an average of 13 per cent. If the house next door has an overgrown garden, broken windows, or a rundown car in the drive it could force down the property’s value by an estimated £21,000 (3).
Estate agents are virtually unanimous (98 per cent) in their belief that an unsightly or poorly maintained neighbouring property has a negative impact on the price buyers will pay for a home. The number one eyesore next door that drives down property prices is broken or boarded up windows, followed by rubbish and junk in the front garden. If your neighbours have garish paintwork, an overgrown garden or even dirty windows, this could also wipe thousands off the value of a property.
The five top eyesores that estate agents believe affect the value of a neighbouring property are:
- Broken or boarded up windows
- Rubbish or junk in the front garden or drive
- Overflowing gutters
- Unsightly or imposing extensions and DIY
- Run down vehicles in the front drive
Martin Scott, Head of Churchill home insurance 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. 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.”
Notes to editors:
1. Churchill home Insurance commissioned independent research amongst a sample of 104 estate agents across the UK
2. According to the most recent Land Registry data (November 2012) the average house price for homes in England and Wales is £161,490. http://www.landregistry.gov.uk/public/house-prices-and-sales. According to Churchill’s survey, well maintained and attractive homes surrounding a property have the potential to increase the sale price by as much as12 per cent.
£161,490*12% = £19,379
3. Using the same methodology as above:
£161,490*13% = £20,994
For further information:
Churchill Press Office
Tel: 0208 285 8795
Founded in 1989, Churchill is now one of the UK's leading providers of general insurance, offering car, home, travel and pet insurance cover over the phone or on-line.
Churchill general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales no 1179980. U K Insurance Limited are authorised and regulated by the Financial Services Authority.
Churchill and U K Insurance Limited are both part of Direct Line Insurance Group plc, which is wholly owned by the Royal Bank of Scotland Group.
Customers can find out more about Churchill products or get a quote by calling 0800 200300 or visiting www.churchill.com.