The latest research from Yopa has found that homes which come with a dedicated car parking space might not command the market premiums homebuyers expect.
Yopa has analysed hundreds of thousands of current property listings in England to calculate the estimated price premium commanded by homes that come with their own parking space* compared to the general average house price.
Abundance of properties fit with a parking spot in the current market
Yopa’s analysis reveals that there are currently an estimated 770,965 homes listed on England’s housing market. Of these, 615,882 come with their own car parking space, equivalent to 80% of all listings.
Properties fit with a parking space are most prevalent in the East of England where 89% of all current regional listings boast this sought after feature. In the West Midlands, 88% of listings have a parking space, and in the South West, it’s 86%.
Unsurprisingly, parking is most scarce in London, but even here more than half of current listings (53%) come with their own space.
Parking price premiums run as high as £73,0000
Given that parking space properties are so prevalent in the current market, one might wonder why it’s previously been touted as such a hot commodity amongst homebuyers.
Yopa's analysis shows that in today’s market, homes boasting the addition of a parking space command an average asking price of £402,632, which equates to just a 3% house price premium when compared to the wider average asking price across the nation.
However, whilst this might not sound particularly substantial, it still equates to almost £12,000 more than a property without the benefit of parking.
What’s more, the premium is far higher in some regions compared to others and nowhere more so than in the North East. Here, the average price for a parking property is £230,157 which is +19% higher than the region’s overall average house price (£193,706) - a premium of over £36,000.
In Yorkshire & Humber, private parking comes at a price premium of 18%, along with the North West (18%), West Midlands (14%), and South East (13%).
In London, a parking space will boost the asking price of a property to the tune of just 11%, but due to the far higher property prices within the capital, this equates to a jump og £72,989 - the largest monetary premium of all regions.
CEO of Yopa, Verona Frankish, commented: “Homebuyers tend to embark on their property search with a list of ‘must haves’ and for many, parking is one of these essential features. After all, our vehicles can be our most expensive outgoings after our homes so peace of mind that they are parked safely is understandably a high priority.
"So despite the fact that there is currently an abundance of stock listed for sale with the addition of a parking space, such properties can still command hefty house price premiums, with the price buyers are willing to pay climbing substantially in some regions compared to others.
"This means that, as a seller, it can really pay to showcase your property’s parking spaces when listing on the market, particularly if you have a secure and safe space such as a garage, or other parking security measures installed.
"For those looking to add value to their home, upgrading your dilapidated driveway to a car parking paradise is one way that’s sure to add value in the eyes of potential buyers.”