Some areas are more expensive than others. No surprise there – after all, some places are simply more desirable to live in than others. Rather more intriguing, though, is the fact that there seem to be quite a lot of people for whom the actual content of the address – for example, whether it includes the words “Street,” “Road,” or “Square” – is also important enough to impact on the price they are prepared to pay.
There is plenty of anecdotal evidence to support this idea. But is it really true? Always on the lookout for some interesting new angle on property market statistics, we thought we’d apply a bit of science to the subject, and test it out with reference to the Land Registry’s sales data for 2017 so far, to see if there was actually any correlation…
And it turns out that there is! The average sale price of properties sold on a "Road" this year to date is £301,950. However, to purchase on a “Park,” you can expect to pay a 9% premium, while properties on a “Place”, “Hill”, or “Garden” could set you back thousands more. Owning a property with no street address at all added £10,000 to its value, compared to one on a “Road”. At the top end of the budget, just 0.5% of all properties sold this year have been on a “Square”, where the average price is £462,895 – an amazing 53% more expensive than a “Road.” Still, “Road” clearly has kerb appeal for more buyers than any other address, accounting for a substantial 30.7% of all sales this year.
As with all such figures, it’s worth remembering that these are national averages. So, in some places, properties on a particular “Road” will actually command premium prices.
Still, it makes you think. No wonder some developers like to build “Crescents” and “Squares” whenever they get the chance!