"It’s 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"
- Verona Frankish - Yopa
New research from Yopa analysed house price data for homes currently listed for sale across England that also come with the additional draw of sitting just a short walk from the nearest town centre.
Yopa then compared the value of these homes to the average value of a home in the wider area* to understand what kind of premium homebuyers are willing to pay to have easy access to shops and amenities.
The old adage of location, location, location is more than a cliche. Homebuyers value location above almost everything else, and being within a short walk of shops and amenities is something that many buyers desire.
However, buying a home that puts you within a short walk of a town centre comes with a significant price premium.
Across England, the average price for a home within a hop and a skip of a town centre is currently £380,025. That’s a premium of 27.6% compared to the current average house price of £297,735, meaning buyers are willing to pay £82,290 more to live within close proximity of a town centre.
A regional analysis of the data reveals that this high premium is being driven by London where homes within a short walk of desirable high streets and shopping destinations command a hefty average price tag of £2,405,712. This is a huge premium of 378.6% (£1.9m) compared to London’s wider average house price which currently stands at £502,690.
Outside of the capital, the premium being paid for walkable access to amenities is lower, but remains significant.
In Yorkshire & Humber, the average regional house price is £204,754. Meanwhile, a short walk to town carries an average asking price of £248,449. This marks a premium of 21.3%, equivalent to £43,695.
A 14.2% short walk premium in the West Midlands is equivalent to an additional £34,448, while buyers who want to be close to town in the East of England are facing a premium of 13.7% (£46,407) on top of the region’s average price.
The short walk premium in the South West is 13.6%, followed by the North West (9.3%), South East (6.5%), North East (3.3%), and East Midlands (0.9%).
CEO of Yopa, Verona Frankish, 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.
"It’s these kinds of key selling points that sellers need to be aware of when valuing their home, or rather, something that they need to make sure their chosen estate agent is aware of.
"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.”
