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flyingfido

Finding Value In London: Price Per Sq Ft

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Hi everyone,

My name’s John and this year I bought a flat in Kennington, London (my first home, wahey!). To be honest, I got a bit pissed off during the process particularly working out where to buy a property in London and how much to pay.

My problem was that I wasn't sure if what I was paying for was good value for the area that I was looking at. I spoke to some friends in property and they always mention price per sq ft as the best way to pick up a bargain, however, I couldn’t find any metrics to use as a comparison.

This frustrated me. So I want to create a website that will tell people whether or not the house they are buying is good value (by allowing them to compare houses of the same size, number of bedrooms etc. in the same area). I will do this by comparing houses based on the price per sq foot in each area. However, I want to gauge whether this would be of interest to others.

If you help me out I'll give you free access to the site and/or a copy of this information once I've pulled it together. All I need is for you to answer 3 questions below. I'm trying to figure out if others are having these problems and whether the information I can provide would help to solve this problem.

1. When looking at houses, do you have a problem figuring out if what you are paying for a property is good value?

2. If you could be told whether or not the price was good value (by using price per square foot for similar properties in the postcode/area to calculate how much the property should cost and allowing you to compare it to similar properties i.e. no. bedrooms, bathrooms etc in this areas and others), then would you find this information useful?

3. How much would you be willing to pay for this information?

If you are interested in this, then please write the answers below in this post or send me an email at john [at] buyahouseinlondon [dot] com and I’ll send through a free copy of the answers as soon as they are ready and will give you future access to the site.

Also, let me know any other thoughts you might have about this.

Cheers.

John

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I think that sounds like a good idea in principle, but I can see a few problems with working out 'value' based on floor space and postcode, especially in London.

Taking Kennington as an example, there are a small number of nice bits surrounded by really nasty bits, and the nicest bits are never more than a couple of hhundred yards away from the nasty bits. A website which looks at properties in the area, even if the particular postcode is broken down into a large number of sub areas, will inevitably not be able to differentiate between nice and nasty bits.

Kennington isn't unique. Another example would be, say Crescent Grove by Clapham Common. The houses there are amazing and worth millions, but the council blocks immediately behind Crescent Grove are pretty scary.

Good luck, though, and apologies for being a bit of a pessimist.

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I think that sounds like a good idea in principle, but I can see a few problems with working out 'value' based on floor space and postcode, especially in London.

Taking Kennington as an example, there are a small number of nice bits surrounded by really nasty bits, and the nicest bits are never more than a couple of hhundred yards away from the nasty bits. A website which looks at properties in the area, even if the particular postcode is broken down into a large number of sub areas, will inevitably not be able to differentiate between nice and nasty bits.

Kennington isn't unique. Another example would be, say Crescent Grove by Clapham Common. The houses there are amazing and worth millions, but the council blocks immediately behind Crescent Grove are pretty scary.

Good luck, though, and apologies for being a bit of a pessimist.

Cheers for your response. I understand your issues and did a test run in Kennington to see if it'd work. It seems to though it is necessary to get a street view for certain areas. Initial view is that it can to be made to work with enough data, which I can get hold off. As you suggest a key element which I integrated on the test and would need to include integrate and makes the information much more effective is differentiating between whether council or not, type of property and also size. Any further comments much appreciated.

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Isn't this what mouseprice and zoopla attemt to do by using number of bedrooms.

Except that they don't achieve it because they don't know the number of bedrooms that a house has, unless someone enters it in, and not everyone does this correctly.

I would guess getting a database of areas would be even harder as most buyers wont have the faintest idea what the area of their purchase is

tim

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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