April 2014 – A Sexy Address can add 40% to the Value of a Home
If the name of your address is one which buyers desire it can add up to 40% to the value of your home, whilst the wrong name can wipe off 20%. London’s most desirable and valuable address names are crescent, square and mews whilst the least coveted are road, grove and court. The London property market benefits from selling more properties which have desirable address names than the rest of England and Wales combined.
These are just some of the fascinating results of a survey which has analysed the links between address names and sales values conducted by leading estate agent Wetherell, in conjunction with Dataloft, the property intelliegence group. To download the full report click here
Wetherell commissioned Dataloft to analyse the value, desirability and impact of a property’s address in order to evaluate the importance of whether a property resides on a crescent, square, garden, street, road place or grove. Using Lonres, Land Registry and Wetherell sales data and market intelligence, Dataloft analysed property sales across prime central London over a 12 month period in order to determine what value can be attributed to purchasing in specific address names/locations and investigated how London compared to the national picture (see methodology at end for full details).
The survey calculated that over a 12 month period there were 2,400 property sales across prime central London, with an average sales price of £1,503 per sqft. The volume of transactions and the average price paid per square foot for properties by road suffix was then analysed in order to generate a hierarchy of street names ranked by property values achieve for prime central London.
The results found that a “crescent” is the most expensive and desirable place to live in prime central London. “Crescents” command a price paid per sqft of £2,103, 40% higher than the average paid across central London. The sales price of a typical “crescent” home in London is over £5 million for 2,000 sqft of living space. Britain’s top three most expensive “crescents” are Wilton (Belgravia), Hans (Knightsbridge) and Pelham (South Kensington), with a 9,100 sqft home selling in Wilton Crescent for a record £32 million.
Properties on a “square” are next in rank, command a price paid per sqft of £1,807 sqft, 20% higher than the London average. The sales price of a typical “square” home is £3.8 million. Britain’s top three most expensive “squares” are Grosvenor Square in Mayfair (£3,707 per sqft), Eaton Square in Belgravia (£3,167) and Cadogan Square in Chelsea (£2,925 per sqft).
In third place are “mews” homes. Once stables and coach houses for servants, they are now highly desirable low rise homes, many containing garage spaces, located on secluded cobbled streets set behind London’s grandest crescents and squares. Averaging £1,715 per sqft, “mews” homes achieve a 14% price premium over the average for central London with a typical property of this type in the centre of the capital costing £3 million. Britain’s most expensive “mews” ranked are Pont Street Mews and Grosvenor Mews in Knightsbridge, Belgrave Mews South in Belgravia and Woods Mews (off Park Lane) in Mayfair.
The next address names ranked by property value are “row” (£1,696 per sqft), “place” (£1,651), “gate” (£1,613), “terrace” (£1,568), “walk” (£1,533) and “gardens” (£1,509).
However equally as interesting, are those address names which “underperform” against the central London average sales price of £1,503 per sqft: and are consequently are the most unattractive address names to have in the capital. The least desirable place to live is on a “road”, whose value at £1,236 per sqft, is almost 20% below the average for PCL. “Grove” at £1,277 is 15% below the average, whilst “court” (£1,420), “street” (£1,443) and “avenue” (£1,491) are also up to 5% below.
Desirable address names can also elevate a location. The survey found that the capital’s most expensive districts are dominated by sales on “sexy” addresses. Over a 12 month period, a total of £659 million worth of sales were on “squares” in central London. In Knightsbridge over a 12 month period, almost 70% of sales can be attributed to just four “sexy” address names – crescent, square, mews and place. In Belgravia just three names – square, mews, terrace – accounted for 30% of all sales. Likewise Mayfair – considered by many to be London’s best address – has no “road” names at all and over a 12 month period sales on desirable addresses such as squares and places. Likewise in Kensington over 50% of sales over 12 months are on just three popular address names – gardens, square and place.
The survey also highlighted the significant “quality divide” between London property – where sales are linked to “sexy names” – and homes in the rest of England and Wales – which are often linked to undesirable address names.
So “road” – the least valuable and desirable of all the property names – accounted for 31% of sales across England and Wales over a 12 month period, compared to just 13% of sales in Central London. Likewise underperforming names such as “avenue” accounted for 7.4% of sales across England and Wales yet just 2% in London and “court” 1.8% against 0.9%. In contrast, sexy names such as “crescent”, “square”, “place”, “mews”, “terrace” and “gate” accounted for approaching a third of sales in PCL, compared to just 6.1% of sales throughout the rest of England and Wales.
Peter Wetherell, Managing Director of Wetherell said: “Our address names survey and the hierarchy it has produced has generated a wealth of fascinating findings which have implications for property marketing, local authority address naming strategies and the growing value gap between property in PCL and the rest of England and Wales.”
“It shows how London’s best addresses consolidate their power and value by having the in-built advantage of being dominated by “sexy address” names. So for example, Mayfair has no “roads” but lots of attractive squares, places and mews. The centre of the capital is dominated by grand crescents, big terraced houses and lovely leafy squares where the wealthy choose to live.”
“Outside of London, the reverse is true, sales are dominated by “road” addresses – the least valuable and desirable of all the names in our hierarchy – and there are far less sales associated with sexy address names. Given all of this is it any wonder that the value gap between prime central London and the rest of the country has become such a huge chasm?”
“Property developers often like to name their developments after Court, Grove and Avenue, our survey shows that this is could be a bad descision since our survey demonstrates that these names do not have value or appeal compared to others within our property name hierarchy.”
“Likewise, local authorities who rush call a thoroughfare a “road” could be doing residents there a huge disservice and potentially eroding the future prestige and value of their home, since a road is viewed by some purchasers as a very “common” – even downmarket – place to live.”
Using Lonres, Land Registry and Wetherell sales data and market intelligence, Dataloft analysed property sales across prime central London during 2013 (a full 12 month period) in order to determine what value can be attributed to purchasing in specific address names/locations and investigated how London compared to the national picture. Prime central London as defined by this survey consisted of properties within the postcodes of W1, SW1, SW3, SW7 and SW10. During 2013 there were 2,400 property sales across this prime central London area. The survey analysed sales by both location, and also street suffix, with the 14 names reviewed being: street, road, gardens, place, square, mews, terrace, gate, grove, avenue, row, walk, crescent and court. The survey compared the London data to sales across England and Wales. In 2013, 769,776 properties sold across England and Wales, totaling a staggering £190 billion, the equivalent to the GDP of Denmark.