{"id":198315,"date":"2025-07-15T07:54:09","date_gmt":"2025-07-15T06:54:09","guid":{"rendered":"https:\/\/www.hunters.com\/?p=198315"},"modified":"2025-07-15T07:55:24","modified_gmt":"2025-07-15T06:55:24","slug":"what-factors-affect-house-prices","status":"publish","type":"post","link":"https:\/\/www.hunters.com\/guides\/selling\/what-factors-affect-house-prices\/","title":{"rendered":"What factors affect house prices?"},"content":{"rendered":"

House prices are constantly changing and it can be difficult to understand why. Several key factors affect house prices; some of these are within your control, whilst others are due to much wider factors, like the state of the economy.\u00a0<\/span><\/p>\n

Read on to find out how you can get the best price for your property, and talk to our expert team<\/a> if you have any questions about your home.<\/span><\/p>\n

What affects house prices?<\/span><\/h2>\n

Various things affect how much your house is worth, and these include:<\/span><\/p>\n

Location<\/span><\/h3>\n

This is one of the most important factors when it comes to pricing homes; desirable areas attract higher prices because more people want to live there.<\/span><\/p>\n

Suburban locations with good schools, good transport links, access to shopping, entertainment, and local jobs, are likely to have higher house prices.\u00a0<\/span><\/p>\n

City centre locations can also attract higher prices. This is especially true of London (as it\u2019s seen as a global city) but it\u2019s also true of cities like Manchester, Birmingham and Leeds. City centres have plenty of well-paid jobs available and they\u2019re busy, exciting places to live in, so this increases property prices.<\/span><\/p>\n

Supply and demand<\/span><\/h3>\n

This is a factor that\u2019s outside of your control, but it can guide you on when might be a good time to sell. If there are more buyers than houses available, then house prices will go up.<\/span><\/p>\n

The wider economy<\/span><\/h3>\n

The economy plays a big part in the property market, with things such as interest rates having a strong effect on house prices.\u00a0<\/span><\/p>\n

If interest rates are low, it makes it easier for more people to borrow money to buy a house; the lower the interest rate, the lower the cost of the mortgage. This means more people can afford mortgages, so there\u2019s an increased demand for property, and this in turn raises house prices.\u00a0<\/span><\/p>\n

If the economy is struggling and unemployment is rising, there\u2019ll be less demand for houses and this will bring down their price.<\/span><\/p>\n

The property itself<\/span><\/h3>\n

The size and type of your property will impact its value, and so will the state that it\u2019s in. A well-maintained home, that\u2019s clean and nicely decorated will get a better price than one that\u2019s run down and needs a lot of work and repairs etc.<\/span><\/p>\n

The potential to extend\/renovate<\/span><\/h3>\n

If there\u2019s additional space around your property, this could make your property more attractive to buyers and nudge the price up. Some buyers or investors look for homes where they can increase floor space by adding more living areas, bedrooms and bathrooms. This makes it a more spacious home to live in, and it will increase how much the house is worth when it comes to selling.<\/span><\/p>\n

What reduces property value?<\/span><\/h2>\n

If you\u2019re thinking of selling your home, you\u2019ll want to get the best price possible for it. To make this happen there are certain things you can tackle to make your house worth more.<\/span><\/p>\n

Outdated features<\/span><\/h3>\n

Outdated bathrooms and kitchens stand out to some buyers, and they can make your house worth less. Buyers like to imagine themselves living in the home they\u2019re viewing, and if it\u2019s very outdated, they won\u2019t want to live there. Some buyers don\u2019t want to have to redo rooms after moving in; they\u2019ll be thinking about the extra cost it involves, and it might feel overwhelming on top of the costs of buying the property.\u00a0<\/span><\/p>\n

If you decide to update features like the bathroom or kitchen before selling, then aim for something simple, modern and neutral. This will appeal to the majority of buyers out there.<\/span><\/p>\n

Property market conditions<\/span><\/h3>\n

Market conditions aren\u2019t within your control, but it\u2019s worth keeping an eye on what\u2019s happening and how it affects your property\u2019s current value. High interest rates will always impact house prices because they lead to higher mortgage payments. This means that many people won\u2019t be able to enter the housing market (or move within it) so they\u2019ll wait until things improve.<\/span><\/p>\n

Fewer buyers<\/span><\/h3>\n

Sometimes specific areas simply have fewer buyers for a while, and this can be for a variety of reasons. If this is the case, the reduced demand will bring down how much your house is worth. This will likely change, so keep in touch with your local estate agent and they\u2019ll let you know when the local market starts to shift again.<\/span><\/p>\n

How to boost your property\u2019s value<\/span><\/h2>\n

The good news is that if you want to boost your property\u2019s value, there are many things that you can do before putting it on the market. We\u2019re always here to help with ideas and advice. Have a read and contact us if you\u2019d like to talk about how to increase your property\u2019s value.<\/span><\/p>\n

Improve kerb appeal<\/span><\/h3>\n

First impressions matter, and the outside of your home is often the first thing that potential buyers see. Any damage to the exterior gives viewers a bad impression of your home, and they may not even bother to look inside. Broken gutters, cracked walls, or outdated, worn window fittings are all very off-putting to viewers.\u00a0<\/span><\/p>\n

Your garden is an important part of your home when selling. If your front garden is overgrown, or your fences are falling, this will bring down your property valuation, and buyers may see your home in a negative light.\u00a0<\/span><\/p>\n

Spend some time improving your garden area:<\/span><\/p>\n