Homes with off-road parking will not only have a higher sale price, but rental value will also increase as more people buy electric cars.
Increase in EV sales
The electric vehicle (EV) market is booming, which will inevitably have an impact on real estate prices. With a limited number of charging stations on the road network, having a home charging station is an absolute necessity for most electric car owners.
According to the latest vehicle statistics, electric car sales nearly doubled during Covid in 2020, and electric vehicle sales had another record year in 2021 – more battery electric vehicles were sold than in recent years. previous five years combined, reaching almost 12% of all new car sales. , and a further 7% were plug-in hybrid electric vehicles, almost a fifth of the total.
From January to May 2022, electric car sales statistics continued their record sales growth. March 2022 saw the highest volume of battery-only registrations ever recorded in a single month – as a result electric vehicles of all types accounted for just under 28% of all new car registrations in April after the change in March 1 plate.
Now, with fuel prices soaring, people have another reason to go electric. Coupled with the Covid effect of increased demand for more space – home offices and gardens – soaring fuel prices are driving even higher demand for electric vehicles, clear signals that properties with driveways and more space will lead to high prices.
Savills confirms that he has seen an increase in demand for homes with off-road parking and more space for work from home, office/garden/garage.
In suburban London, Savills says homes with driveways now command a 5% premium over similar properties without the ability to charge a vehicle. But in the more expensive parts of town, that premium can be as high as a third – a price 33% higher with a driveway, even more than the premium a large garden usually commands.
More space and an aisle boost the value
A large garden, says Savills, is always worth more than a driveway in some of the leafier parts of London, where they will increase a property’s value by up to 10%.
The nationwide shortage of vehicle charging points means the housing price premium for homes with off-street parking should be with us for some time. According to Savills, a house with a driveway in suburban London could add £23,500 to the price of a £500,000 house.
Will Watson, of The Buying Solution agents, said The Daily Telegraph that off-street parking in London could easily add up to 20pc to the price of a family home. He says:
“The big concern for London is that people will struggle to charge electric vehicles if they don’t have a parking space. That premium is set to potentially get much higher.
So far, these price premiums have mainly affected the capital, this is because London has been the place in the country where most people buy electric cars. However, real estate experts predict this price premium should quickly spread to other suburban towns in the Home Counties and beyond.
Lucian Cook of Savills, head of residential research and one of the country’s most respected housing market commentators, having served as director of Savills’ research team since 2007, said the places in the country where EV ownership far exceeds charging points are the ones most likely to see a big impact on home values. He says:
“As the gap between demand for electric cars and public charging stations grows, we can expect homes that offer private charging services to become more expensive.”
Similarly, Charles Davenport, of Knight Frank estate agents in Elmbridge, said The Daily Telegraph that off-street parking was becoming a deciding factor for electric car buyers.
He said: “We had a house in Cobham and the couple looking at it had an electric car and they said sorry we can’t as there is no off street parking and it’s absolutely essential for us .”
Over the past two years, the combined number of registered electric cars has increased by almost 200%, while the number of charging stations has only increased by 72%.
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