Living near a shopping centre can slash as much as £260,000 off the price of house
The strange phenomenon means properties near commercial centres can be worth 25% less than the local average, which is great news for anyone with their heart set on an area they feel priced out of
Those struggling to buy a house should look at properties near shopping centres, which can be 25% cheaper than others nearby.
New research even shows that houses near shopping centres can be worth up to £260,000 less than comparable ones.
The most pronounced region for this is in London, near the Westfield shopping centre in Stratford.
The average house price in Stratford is around £1million, according to online bank Thinkmoney, which spotted the trend.
But if you own a property in the same postcode as the Westfield centre, that drops to £744,447 – a drop of £261,473 or around 25%.
Likewise, in Milton Keynes the typical house is worth £269,989. But that falls by £89,560 if you own a house near The Centre, the local shopping centre.
In Tunbridge Wells the average property is worth £543,521, although this drops to £463,480 if you buy near the Royal Victoria Place centre.
Then in Basingstoke, Hampshire, the average house price of £321,261 will fall by £76,556 to £244,705 if located near the Festival Place centre.
There are several reasons for this, according to Robert Burdett, managing director of James Leigh Property Management.
Burdett said: “There is a clear link between shopping centres and house price values, but it isn’t as simple as the closer you are the more valuable property becomes.”
House prices can even be up to 5% higher if there is a good shopping centre nearby.
But that doesn’t apply to houses very close to it.
Burdett said that is because areas near shopping centres tend to be very commercial, with heavy traffic, which can drag on house prices.
He added: “That said, shopping centres employ hundreds, if not thousands of people, many on fairly low wages, so there is a requirement for homes that are accessible to this group, which creates a need for quality, affordable homes.
“These could be rental properties or high-density housing where values are lower, but competition can be fierce.
“Having said this, the impact of shopping centres on house prices has been mitigated somewhat by Covid, and other factors like the lack of available property for sale and the Stamp Duty holiday.”
Six famous shopping centres around the country will have closed by the end of the year .
These include the Broadmarsh Centre in Nottingham, the Castlegate Centre in Stockton, the Riverside in Shrewsbury and the Chilterns Shopping Centre in High Wycombe.
Further closures will strike the Nicholsons Centre in Maidenhead and the Elephant & Castle Shopping Centre in London.