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local issues pushing up house prices
gazter
Posts: 931 Forumite
We are in the process of purchasing a property for £245,000. We are very happy with what is four bedroom listed georgian house, fully modernised inside.
We instructed a full survey, our surveyor was very happy with the property. Actually he was quite gushing about the scale, size and location.
He made an interesting point. The place we are moving is a small village just on the outside of a small city.
Until recently it essentially had one main road running past it, which led you straight into the city. If you wanted to go north, east west or south, there was no other way to do it than going through the city.
In the last twelve months a new bypass has opened, which breaks between this road and the city. This now gives immediate access to the north (which gives you motorway access and A road access within a few minutes), east, and importantly it lets you get to the edge of the west of the city quite quickly.
For me personally, this is great, i do a lot of work out in the west of the county (which without the bypass would necessitate a drive through the city).
Back to the point. He believes that the house prices in this village, and others in the vicinity are going to rise quite dramatically because of the bypass, as the of thousands of people who make a daily commute to the west of the county are going to be snapping them up.
He believed that the agreed sale price was a 'pre bypass' price, and the ripple effect will be to add 10% to 15% on local prices within three years.
We are of course, going to buy the house anyway, just an interesting note.
Would something like a new bypass actually have a lag impact, ie, it took a few years for its consequences to seep into the market place?
We instructed a full survey, our surveyor was very happy with the property. Actually he was quite gushing about the scale, size and location.
He made an interesting point. The place we are moving is a small village just on the outside of a small city.
Until recently it essentially had one main road running past it, which led you straight into the city. If you wanted to go north, east west or south, there was no other way to do it than going through the city.
In the last twelve months a new bypass has opened, which breaks between this road and the city. This now gives immediate access to the north (which gives you motorway access and A road access within a few minutes), east, and importantly it lets you get to the edge of the west of the city quite quickly.
For me personally, this is great, i do a lot of work out in the west of the county (which without the bypass would necessitate a drive through the city).
Back to the point. He believes that the house prices in this village, and others in the vicinity are going to rise quite dramatically because of the bypass, as the of thousands of people who make a daily commute to the west of the county are going to be snapping them up.
He believed that the agreed sale price was a 'pre bypass' price, and the ripple effect will be to add 10% to 15% on local prices within three years.
We are of course, going to buy the house anyway, just an interesting note.
Would something like a new bypass actually have a lag impact, ie, it took a few years for its consequences to seep into the market place?
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Comments
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Its absolutely possible, new commuting links will make the area more desirable, therefore demand may start to outdo supply, and prices will rise.0
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Yes, things like that do take time to have effect.
People might not be aware of the bypass or utilise it properly initially. So the incremental demand won't arrive in the area right away.
House prices are often valued based on other recent house prices in the area. This anchoring produces an inertia in prices.
etc.
But the key word is *might*. Who knows what impact it will really have?0 -
He believes that the house prices in this village,princeofpounds wrote: »
But the key word is *might*. Who knows what impact it will really have?
The problem is that until the use of the road has settled and reached its normal traffic load no one knows how it will affect the area.
In an ideal world the new bypass will make the commutes easier for this village, but what happens if the junctions become traffic black spots and the journey into town takes twice as long?
That’s why the lag happens, people don’t like the unknown.0 -
There are of course other issues to think about. I can think of one small town close to where I live that was desperate to get a bypass, the town was bisected by a busy road that made shopping in the main street difficult and the town ultra busy.
The bypass arrived, the town became less busy but all the restaurants and shops that relied on passing trade shut down! It is now a less desirable place to live because it has no amenities.0 -
There are of course other issues to think about. I can think of one small town close to where I live that was desperate to get a bypass, the town was bisected by a busy road that made shopping in the main street difficult and the town ultra busy.
The bypass arrived, the town became less busy but all the restaurants and shops that relied on passing trade shut down! It is now a less desirable place to live because it has no amenities.
In the case of this place, it is a small village, it long ago lost its amenities. The road is about a quarter of a mile away down another road.. There never was any through traffic.0 -
The only way to test this for sure is to wait!
The nearest answer you may find is to look at a similar development in a similar timeframe. I'm a city girl, so never had to worry about bypasses, but if the valuer made those comments, they might be able to think of really good comparisons for you
Good luck with the house, it sounds lovelySo many glitches, so little time...0 -
Dave_the_Ginger_Cat wrote: »The only way to test this for sure is to wait!
The nearest answer you may find is to look at a similar development in a similar timeframe. I'm a city girl, so never had to worry about bypasses, but if the valuer made those comments, they might be able to think of really good comparisons for you
Good luck with the house, it sounds lovely
It is, we are taken aback because it is so amazing and at such a great price. I'm reluctant to link on here in case of gazumping...0
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