According to a seasoned property expert, the market value of properties might witness a significant decrease if they do not adhere to the required energy efficiency standards.
In the words of Jonathan Rolande, a representative from the National Association of Property Buyers, “Dwellings lacking in energy efficiency could experience a notable drop in their overall value. The overarching concern of climate change affects everyone, but its impact tends to be more pronounced in rural settings. In these areas, the heightened risk of flooding, emanating from both rivers and hills, exacerbates the challenges posed by climate-related issues.”
Rolande emphasizes the broader implications of climate change on property values, making it clear that the issue is not confined to urban environments. As climate change continues to be a pressing concern, the consequences are felt across various landscapes, with rural areas facing unique challenges related to flooding. This insightful perspective underscores the importance of addressing energy efficiency not only for environmental reasons but also for safeguarding property investments against potential depreciation.
He notes that although energy efficiency is gaining importance among property buyers, he points out that rural areas, being generally colder, face a more substantial impact from price hikes, especially if they don’t use mains gas. “Older country homes can be chilly and drafty, and insulating them can be expensive, especially without compromising their character,” he advises.
Rolande outlines five additional factors that can significantly influence property values during a sale.
Connectivity – “For many, 4G, 5G, and high-speed broadband are as crucial as gas and electricity. While no place is flawless, numerous rural areas experience less reliable connectivity, particularly during adverse weather conditions, as witnessed in the recent weeks. If your property is in an area with poor connectivity, it could potentially lead to a decrease in its market value.”
Concerning location, the shift in many companies’ return-to-work policies has escalated from zero to two and three days a week, hinting at an eventual return to a full five-day workweek for a larger population. The increasing distance and complicated commutes may render it impractical for many to sustain the picturesque countryside lifestyle. The lower local wages, coupled with a diminishing number of well-paid urban professionals, are likely to dampen both demand and property prices. Consequently, properties in more remote areas could face more significant repercussions from any potential price decreases.
Regarding nearby amenities, rural areas have witnessed a decline in the post-Covid era, with High Streets and pubs experiencing setbacks. The sentiments of many indicate a perceived loss of the characteristic charm of these places. While the departure of banks and Post Offices might not concern city workers accustomed to online transactions, the overall allure of several villages is undeniably diminishing in certain regions. This decline is consequently influencing property prices in a ripple effect.
Regarding transportation, the government’s recent alterations to the HS2 plans have stirred significant debate in the transport sector. Property professionals are closely observing the rollout, as having access to a reliable and efficient train service is a key factor in maintaining property value. Additionally, the availability of a good local bus or tram service is increasingly becoming a valuable asset. Properties lacking these amenities, necessitating homeowners to rely on cars and secure parking spaces, may find fewer interested buyers, potentially impacting the property prices.
Turning to crime, although being a crime victim remains a rare occurrence for most individuals, prospective homebuyers are now more inclined to scrutinize local crime rates. Areas where the police actively address issues such as low-level anti-social behavior and street crime tend to attract property buyers. Conversely, towns and cities where the local law enforcement acknowledges challenges in combating crime may become less attractive, potentially leading to a downturn in the housing market in those areas.
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