Everybody wants to get a good price for their property but in a volatile market, understanding your estate agent valuation can sometimes be a bit tricky. This is because property is a complicated business. Your luxury home might be just down the road from one that looks almost the same but that doesn’t mean it will attract the same price. When it comes to house value, all kinds of subtle nuances come into play, which is why the services of a knowledgeable local estate agent are so helpful.

If you’re wondering how houses are valued in the UK, this article will help. We take a look at how estate agents value properties, house price predictions in the UK and the impact of house price changes in 2022.

How do estate agents value a property?

It’s both easy and interesting to check the sale prices of properties that are similar to yours but this can sometimes lead to unrealistic expectations. With an online property price check, you only get half the picture. A specialist estate agent has the local skills to fill in any gaps, with expert knowledge about local market appraisal and the impact of important property features. You’ll find a list below of factors your estate agent will take into account before deciding on a price for your property.

Specific property features that can impact your sale price

Although the way you present your property for sale isn’t the only factor in estate agent valuation, it can have a really big impact, especially in the luxury property market in London. Some home improvements add more value than others so it’s worth bearing that in mind before you put your property on the market. If in doubt, talk to your estate agent.

• Open-plan spaces are still popular but so is adding small, dedicated zones for work, rest and play
• More and more people are expecting their homes to help them reduce their environmental impact
• Space is still a post-lockdown premium so opt for lighting and décor tricks in smaller properties
• After our lockdown fever experiences, luxury items such as swimming pools are still in favour
• Usable greenspace remains popular so don’t be afraid to spend on garden or balcony features

Local area specifics that might increase desirability

The phrase location, location, location wasn’t just invented because it sounds good. Even the most tastefully appointed home will be limited in its estate agent valuation if the locality doesn’t match current market expectations. This is where your estate agent’s expert knowledge really comes into play. Their years of experience will allow them to understand subtle nuances such as.

• The number of similar properties available in your area
• The popularity of local schools and their precise catchment areas
• Existing transport links and any plans for new ones
• The nuances of local mobile and broadband coverage
• The impact of official status such as listed building and conservation areas

Nationwide property trends you might not be aware of

Since the pandemic we’ve all seen certain trends in property ownership and desirability. These are always subject to change, often more quickly than you might imagine. We’ve listed a few below but it’s worth being aware that the news, weather events and economic changes can all impact property popularity and value.

• The post-lockdown trend towards larger gardens has started to slow down
• Commuter towns and cities are finally seeing a renewed increase in interest
• The staycation is still popular and fuelling the trends towards holiday homes and lets
• Uncertainty about unpredictable interest rate rises may eventually stifle the property market

How long does an estate agent valuation take?

Before they even visit your property, your estate agent will have undertaken much of the necessary market research, and drawn on their considerable local knowledge. This means they will already have a good idea of your valuation when they arrive to have a look around. The amount of time your estate agent will need to view your property, and chat to you about your expectations will depend on the size of the property. On average this process takes about an hour. You can usually expect a suggestion of what your house is worth at the end of this visit.

Are house prices dropping at the moment?

Following an 18-month post-pandemic boom in UK house prices, you might be surprised to hear that house prices for 2022 in the UK are still rising. According to Nationwide, UK house price growth increased from 10.7% in June to 11.0% in July. The momentum the property market continues to enjoy is currently underpinned by our current low unemployment rate and our inadequate stock of homes. Although things look buoyant at the moment, if you’re thinking of buying or selling a property soon, the question you really need an answer to is, ‘When will house prices go down?’ Read on to find out what the experts say.

When will house prices drop in the UK?

There are signs that this upward trend in the UK house prices forecast is finally set to change but it is likely that prices will stabilise for a while before that happens. Over the year ahead, there are several factors that are predicted to bring about a gradual drop in house prices. These include.

• We are currently experiencing the steepest drop in household income since records began. With available cash set to continue dropping well into 2023, and not predicted to rise to current levels again until 2024, a reluctance to take risks and move house may well cause a UK house price fall.
• Unpredictability and uncertainty in fuel and energy prices and availability are likely to encourage safer behaviour when it comes to property purchases. Combined with an expected increase in interest rates, this is likely to encourage people to put off a house move until things settle down.
• The stamp duty holiday led to a significant shortage of available properties. With this pressure eased, more homes are now available for sale. This is expected to encourage a drop in prices.

House price predictions from the local experts

So, there we have it. UK house price predictions suggest that property values will continue to rise in the very short term but are predicted to eventually start to fall again. With so many factors at play, it can be difficult to work out whether to make a property move now or hang on to see how the market performs. By far the best way to make this decision is with the type of expert consultation an experienced local estate agent can give you. Arlington Residential are your Central and North West London luxury property specialists. We understand the nuances of our area and have a long list of loyal and happy clients. For expert advice and support through this unpredictable time, please get in touch with our specialist team today.