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

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  • Dustyevsky
    Dustyevsky Posts: 1,376 Forumite
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    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 
    Maybe not, though, because with really large properties comes extra maintenance and the need to conform with expensive laws relating to listing, land management etc. Also, a posh property in a less desirable area can be a target for crime.


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  • MobileSaver
    MobileSaver Posts: 4,233 Forumite
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    Seeing plenty of houses that have sold for 2/3 the price of larger ones, while almost 1/3 the size! It seems ridiculous.  Any ideas for how I can check?
    Hardly any residential properties in the UK are priced solely on the square footage so I'd suggest it would be a fairly pointless exercise even if you could check.

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  • bobster2
    bobster2 Posts: 517 Forumite
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    Seeing plenty of houses that have sold for 2/3 the price of larger ones, while almost 1/3 the size! It seems ridiculous.  Any ideas for how I can check?
    Hardly any residential properties in the UK are priced solely on the square footage so I'd suggest it would be a fairly pointless exercise even if you could check.


    Hardly pointless if you're buying - you can find out how much space you're getting for your money!
  • Albermarle
    Albermarle Posts: 22,113 Forumite
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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.
    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.    
    Yes that is what I meant.

    So despite there being less demand for bigger more expensive homes, developers build disproportionately more of them. So increasing the shortage of smaller more affordable homes.....
  • Grumpy_chap
    Grumpy_chap Posts: 14,881 Forumite
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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.

    Is this a question of price per square meter?
    Or about the size of the house in terms of number of rooms?

    A larger house - 3 bed instead of 2 - will be more expensive.
    A larger house - large 3 bed instead of small 3 bed - will be proportionately cheaper.  Although more space is nice, it costs more to run and can't fundamentally do more. 
    Consider a house with two double bedrooms (large double bedroom "master" and small double bedroom) and a box room (typical 1930's semi around our area).  Both of the double bedrooms will fit:
    • kingsize bed
    • two bedside cabinets
    • wardrobe
    • dressing table
    • small chair
    Fundamentally, you can't do more in the larger double bedroom "master" than in the small double bedroom.
    So, if you were buying a house, how much extra would you pay for a three bed house with larger sized rooms over a three bed house with adequately sized rooms given you can't actually "do more" in the larger of the two houses?  The space in the larger of the two houses is still just nice to have.
  • spoovy
    spoovy Posts: 236 Forumite
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    A large car is not twice the price of a car half it's size, because it's not twice as useful -- it can still only be in one place at a time.
    Same with houses.
  • DullGreyGuy
    DullGreyGuy Posts: 10,368 Forumite
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    spoovy said:
    A large car is not twice the price of a car half it's size, because it's not twice as useful -- it can still only be in one place at a time.
    Same with houses.
    But a fast car can be well over twice the price and still can only be in one place at a time. 
  • spoovy
    spoovy Posts: 236 Forumite
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    I'm assuming all other factors but car size are equal, of course. 

    Put a longer way, the main utility of owning a house is that you have a secure place to live -- no landlord can turf you out on a whim, and you don't have to pay rent for the rest of your life. This utility is the same and therefore has the same value whether a house is 100sqm or 200sqm. Many other factors come into the price too of course but this is the main reason why there isn't a linear relationship between size and price for the majority of houses (being semis, terraces etc).
  • 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. 
    Thanks very interesting, I should be able to compare better now. Do you think 15% more is plausibly achievable for them?
  • Alderbank
    Alderbank Posts: 2,836 Forumite
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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.
    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.    


    So despite there being less demand for bigger more expensive homes, developers build disproportionately more of them. So increasing the shortage of smaller more affordable homes.....
    I'm not sure about the logic of that.

    Larger more expensive homes are not bought by first time buyers. They are almost always bought by people who have chosen to move up from their smaller home, thereby increasing the number of smaller more affordable homes, very often moving from a 3 bed semi to a 4 bed detached.
    There are lots of families like that on the (newish) estate where I live. They all say they were OK in their previous house and under no pressure to move, they just fancied the move to a bigger new place. 
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