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Are larger houses just cheaper than usual atm, per square meter compared to smaller ones?

Slumbershade
Slumbershade Posts: 667
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edited 6 December 2023 at 1:03PM in House buying, renting & selling
Or are they always cheaper per square meter?

Seeing plenty of houses that have sold for 2/3 the price of larger ones, while almost 1/3 the size! It seems ridiculous. 

It's hard to check this historically as the older listing information dont tend to have the floorplan details anymore on zoopla/rightmove. Any ideas for how I can check? Thanks.

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  • RHemmings
    RHemmings Posts: 3,189
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    edited 6 December 2023 at 1:58PM
    This is something I noted when I started searching for houses. I didn't realise how smaller houses don't really get that much cheaper than bigger ones. It's something people from other countries that saw sample houses I was interested in  mentioned. 

    I looked at some old listings on Zoopla, including the sale of the house I'm currently renting from 2017, and some of them had floorplans with measurements. So, depending on how far back in time you want to go, you can probably find some. 
  • Big houses price people out so have a smaller market. 3 beds are going to be the best sellers normally as they are more affordable for the average buyer but have the required space for families.
  • BeerSavesMoney
    BeerSavesMoney Posts: 195
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    edited 6 December 2023 at 1:27PM
    Or are they always cheaper per square meter?

    Seeing plenty of houses that have sold for 2/3 the price of larger ones, while almost 1/3 the size! It seems ridiculous. 

    It's hard to check this historically as the older listing information dont tend to have the floorplan details anymore on zoopla/rightmove. Any ideas for how I can check? Thanks.

    If you know/can work out the address and they have an EPC then this should display the total floor area - https://www.gov.uk/find-energy-certificate
  • The actual price of a large house is Almost always higher than a smaller house in the same area. However due to income vs lending there will always be less demand for larger houses which in turn is more likely to result in a £ per sqm cost.

    Smaller houses are in more of a competitive market
  • eddddy
    eddddy Posts: 16,141
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    edited 6 December 2023 at 1:39PM

    It's just supply and demand. For example, estate agents don't really price property based on its square meterage, they price it based on what they think buyers would be prepared to pay.

    (Obviously, number of rooms - e.g. bedrooms, reception rooms, bathrooms, toilets, utility room, etc - is a more important indicator of price than square meterage.)

    But it's true that small homes often tend to sell for a higher price per square meter than larger homes. That's why developers often convert a large house into small flats, etc.


  • Albermarle
    Albermarle Posts: 21,169
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    eddddy said:

    It's just supply and demand. For example, estate agents don't really price property based on its square meterage, they price it based on what they think buyers would be prepared to pay.

    (Obviously, number of rooms - e.g. bedrooms, reception rooms, bathrooms, toilets, utility room, etc - is a more important indicator of price than square meterage.)

    But it's true that small homes often tend to sell for a higher price per square meter than larger homes. That's why developers often convert a large house into small flats, etc.


    However when building new homes, developers seem to prefer larger 'executive homes' to smaller affordable houses. It is apparently more profitable to build a bigger home, even though they sell for less per sq m
    I presume if you are starting from zero, a lot of the costs will be similar for a larger home as a smaller one.
  • DullGreyGuy
    DullGreyGuy Posts: 9,182
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    There is effectively a base price for owning a home in the area which a property won't fall below no matter how small it is. It therefore doesn't follow that if its 50% bigger that it will be 50% more expensive. 

    There are also other factors that influence, our flat is 105m2 but 2 bed. There is another 100m2 flat on the market across the road from us but its 3 bed and they're asking for about 15% more even though its technically smaller because of the extra bedroom. 

    Ours is also a duplex with an ensuite bedroom on ground and the rest of the flat above. Not a bad setup if you had a lodger or teenage kids but not so great for those with toddlers etc. 
  • Doozergirl
    Doozergirl Posts: 33,718
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    edited 6 December 2023 at 9:38PM
    eddddy said:

    It's just supply and demand. For example, estate agents don't really price property based on its square meterage, they price it based on what they think buyers would be prepared to pay.

    (Obviously, number of rooms - e.g. bedrooms, reception rooms, bathrooms, toilets, utility room, etc - is a more important indicator of price than square meterage.)

    But it's true that small homes often tend to sell for a higher price per square meter than larger homes. That's why developers often convert a large house into small flats, etc.


    However when building new homes, developers seem to prefer larger 'executive homes' to smaller affordable houses. It is apparently more profitable to build a bigger home, even though they sell for less per sq m
    I presume if you are starting from zero, a lot of the costs will be similar for a larger home as a smaller one.
    It's cheaper to build a bigger house per square metre though.  You'll get more square footage per metre of surface area too, so more square footage per plot of land.    
    Everything that is supposed to be in heaven is already here on earth.
  • There's demand and supply and also utility value versus actual space you are getting 

    I always found that going from a 1 bed to a 2 bed apartment was expensive for very little extra space but very high utility value. (You can have a baby or work from home)

    However as the property gets bigger the utility value of additional space often decreases and you get more space per pound but because the demand for this extra space is lower too as there are fewer rich buyers.
    It's a 30ft living room or a 33ft living room, who even notices?

    The cost of the bricks and mortar is so low that it's still worth building bigger properties.

    Ideally you want to live in an area where your budget puts you in the "low demand" + high price segment and you can get that castle with it's own salmon lake 
  • bobster2
    bobster2 Posts: 443
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    Or are they always cheaper per square meter?

    Seeing plenty of houses that have sold for 2/3 the price of larger ones, while almost 1/3 the size! It seems ridiculous. 

    It's hard to check this historically as the older listing information dont tend to have the floorplan details anymore on zoopla/rightmove. Any ideas for how I can check? Thanks.

    If you know/can work out the address and they have an EPC then this should display the total floor area - https://www.gov.uk/find-energy-certificate
    I would take the floor area on the EPC as a approximate guide. EPC assessors are a bit variable in how well / accurately they do this. I've seen identical houses on an estate with EPC floor areas varying +/- 10%.

    Not a huge variation - but enough to throw off your price per sq m calculations.
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