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Finance Expert Reveals: 10 things that is devaluing your home

Byadmin

Feb 26, 2024 #ABC Finance

The property market in the UK is sensitive to a wide range of issues, from structural concerns to aesthetic appeal and energy efficiency. Finance expert Gary Hemming, from ABC finance explores specific factors that can devalue UK homes and, where possible, provides estimates on how much they could potentially decrease a property’s value.

Poor Exterior Appearance

First impressions count immensely in the property market. A neglected exterior can devalue a property by up to 5-10%. This includes unkempt gardens, peeling paint, and damaged roofing, which can deter potential buyers before they even step inside.

Outdated Kitchens and Bathrooms

Kitchens and bathrooms are pivotal in evaluating a home’s worth. An outdated kitchen or bathroom can reduce a home’s value by approximately 5-10%. Modern, functional spaces, on the other hand, can significantly increase a property’s appeal.

Over Personalisation

Highly personalised decor and unconventional home improvements can detract as much as 5-10% from a home’s value. Potential buyers may struggle to see past distinctive personal touches and consider the cost and effort required to neutralise the space.

Neglected Maintenance

Deferred maintenance can lead to a decrease in value by 10-20%, depending on the severity of the neglect. Issues such as a leaky roof, outdated electrical systems, or inefficient heating and cooling systems are particularly off-putting to buyers.

Structural Problems

Structural issues can be a major red flag and potentially reduce a property’s value by up to 20%. Problems like subsidence, significant dampness, or roof issues are expensive to fix and can significantly affect a home’s marketability.

Poor Energy Efficiency

In an era focused on sustainability, a home’s energy efficiency is increasingly important. Poor energy ratings can decrease a property’s value by around 5-10%. Features like double glazing, efficient boilers, and good insulation are highly valued.

Undesirable Location Factors

Being close to sources of noise pollution, in an area with high crime rates, or in a flood risk zone can devalue a property by 10-20%. Location factors are often beyond a homeowner’s control but are crucial in determining property value.

Inappropriate Renovations

Ill-considered renovations, such as removing a bedroom or converting a garage into living space without proper planning permission, can reduce a home’s value by 5-15%. Such changes can make a property less appealing to the majority of buyers.

Clutter and Lack of Cleanliness

A cluttered and unclean home can make spaces appear smaller and less appealing, potentially reducing the sale price by up to 5%. A clean, decluttered home is more attractive to potential buyers.

Dated Decor

Outdated decor, such as old-fashioned wallpaper or carpets, can detract from a home’s value by approximately 5%. While cosmetic changes are relatively easy to make, they can impact a buyer’s first impression.

White Vans Parked on the Street

This perception is often tied to concerns about congestion, reduced parking availability for residents, and the implication of commercial activity in a primarily residential area. While less quantifiable than other factors, the presence of commercial vehicles can potentially impact a property’s desirability, potentially affecting its value by a marginal but noticeable percentage, say around 1-2%.

Gary Hemming, from ABC finance says: 

The UK housing market values properties based on a combination of location, condition, and presentation. Homeowners looking to preserve or increase their home’s value should focus on regular maintenance, timely updates, and avoiding over personalisation. Addressing structural issues, improving energy efficiency, and keeping decor relatively neutral can help ensure a property remains appealing to a broad audience and retains its market value.

By admin