House prices are influenced by a myriad of factors, and changes in an area can significantly impact property values. Here are the key changes that typically drive house prices upward:

Economic Growth and Employment Opportunities

It will come as no surprise that one of the most important factors is the economic prosperity in an area, often expressing itself as new business openings and increasing job opportunities. When major companies establish headquarters or offices they attract employees who need housing, thereby increasing demand. The converse is also true of course – just look at how prices in Aberdeen are plummeting as a result of the decline of the Oil Industry there.

Improved Infrastructure and Transport Links

Enhancements in transportation infrastructure – such as new roads, railways and other public transport routes makes an area more accessible and generally more desirable. Just look at how every time a new underground or rail line is added in London, the houses around the stations sky-rocket in value​. This is the same generally anywhere that transport links improve – so look out for large investment programs (see Local Plans and Government websites) to get an idea of any potential increase on the cards.

Quality of Schools

Areas with highly-rated schools often see higher house prices. Families with children are willing to pay a premium to live in districts with good educational institutions, which drives up demand for housing in those areas. This phenomenon is well-documented. Ofsted ratings are easy to check.

Crime Rates

Lower crime rates make neighbourhoods more attractive, leading to increased demand for housing. Areas that have successfully implemented crime reduction strategies often see a rise in property values as they become safer and more appealing to residents. The trick is to identify areas which have already, or are currently, turning a corner. There are many free tools online to check this – such as CrimeRate.

Married2Property are a family-run property company that aims to create social good through property.

These articles are written by Darren de Wal for the benefit of those with a general interest in Property, as well as those wishing to start out investing themselves.

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