Parking spaces boost the value of newly built homes
Parking spaces can add a significant sum to the purchase price of newly built property, according to research from Direct Line Insurance.
It found one parking space recently sold alongside a new build property in London for £65,000 – an additional 13% on top of the purchase price.
Parking spaces in the capital are in huge demand, but fewer than a fifth of newly built properties in London include a space in the purchase price, compared to 67% for other major cities, including Leeds, Glasgow and Bristol.
Restrictions from developers often mean only those purchasing two or more bedroom properties even have the option of buying a parking space and even then developers are charging an average of 5% of a new property’s purchase price for it.
Nick Brabham, head of Direct Line’s SELECT Premier Insurance, said: “Restrictions on the number of parking spaces developers can build to accompany new properties make these slots a hot commodity carrying a premium price point. In many new developments, those purchasing studios or one bedroom homes are denied the opportunity to purchase a space as they are reserved for larger properties. As larger scale residential developments are built in urban city centres, traffic volumes will become an increasing issue and planners may restrict the construction of new parking bays even further, making it very difficult for homeowners with vehicles.
“Access to secure parking can sometimes impact on insurance premiums for a vehicle, so people will need to weigh up the potential long term cost savings of purchasing a space carefully. The limited access to affordable parking spaces in many cities is becoming a serious issue, which is why we are seeing a growth in people renting out their driveways and spaces to other motorists.”