Moving house is one of the biggest things you’ll do in your lifetime, so it’s no surprise it comes with months of research, worry, stress and, of course, excitement. If you’re hoping to move, no doubt you’ve been trawling through listings online and making yourselves known to local estate agents. You’ve probably noticed that what you get for your money varies hugely depending on the area in which you’re looking. You might be settled on the exact town you want to live in, or maybe you’re open to a new neighbourhood – either way, it’s useful to know how the location of a property affects its value.

So what are the factors that have an impact on house prices?

Cities

Cities are ever-popular. Limited space, plus demand outstripping supply, mean that property prices soar in urban areas and you get a lot less for your money. While £300,000 can buy you a four double bedroom house in Yorkshire, it’ll only stretch to a one bed flat in many parts of London. And it’s not just house prices that are higher in cities – overall living will cost more too, from the price of your weekly shop to the amount you’re charged for travel.

Accessibility

Buying property in an area that allows you easy train access to London, or other major cities, comes at a cost. With increasing numbers of people moving out of metropolises like London and Birmingham in search of something more peaceful, commuter towns are becoming incredibly in demand – and in turn house prices are shooting up. A quiet home that still allows easy access into the city is seen as the sweet spot and so of course, it comes at a cost.

GDP

GDP affects how much you’ll pay for property. Put simply, areas that make more money on average will be more expensive to live in. Makes sense really. In terms of regional GDP per capita, Inner London is the “richest” area in Europe, whereas Cornwall, for example, is below the European average. Accordingly, the average house price in London is approximately £514,000, while in Cornwall it’s around £265,000. All these facts and figures aside, it really just depends on whether you want the fast-paced city life or a slower coastal existence – and how much you’re willing to pay to get it.

Reputation

How an area is perceived has a sway on how much people are willing to pay for housing. If a town, village or city has a great reputation, it’ll be more in demand and this will drive up prices. Word of mouth counts for a lot. 

Facilities

Houses in areas that boast a Michelin-starred restaurant or a Marks and Spencer are likely to be higher in price than those without such facilities close by. The ‘Waitrose Effect’ is well-known and proximity to the high-end supermarket can push up house prices by nearly £40,000. Areas with good schools and lots to do – museums, art galleries, independent cinemas – are also in demand and therefore drive up the cost of property.