How important is a parking space to the value of your home?

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Parking spaces near residents homesWe all know that investing money in bricks and mortar is money well spent. And after paying a tidy sum to buy your dream home, you can let fluctuations in the market do all the hard work for you and see your property increase in value year on year, credit crunches and recessions withstanding.

For homeowners who are more hands on though, looking for any opportunity to add value to your home is a sure fire way of speeding up this process. From glass conservatories to loft conversions, investing in changes to your home will always reap financial rewards that could stretch from hundreds into thousands of pounds.

One often neglected aspect of homeownership that could be more valuable than it perhaps first seems is having a lowly parking space come with a property.

Adding a parking space

Adding a parking space to your home, or utilising your existing parking space, is hailed by property experts as one of the single most important ways you can add to your property’s worth.

With parking firms trying to glean as much in parking fines from residents as they can get away with, and some boroughs taking away free Sunday parking, families and potential homeowners would rather secure a property with a permanent parking space than become embroiled in any of the nationwide parking scandals.

As an example, Westminster Council has said that single lines next to dropped kerbs would become double lines, a move that will surely infuriate those who may depend on parking in the city centre for work or other purposes.

Parking spaces are increasingly becoming like the veritable needle in the haystack and more and more homeowners are choosing to convert excess space in their property into valuable parking facilities.

Adding a single parking space to your home could see your property’s value soar by 5%. So on a property valued at £200,000 that would represent an increase of £10,000. TV property expert Phil Spencer argues that the benefits of having a parking space could add up to even more:

“If you want to add value in an area where parking is at a premium, then it is concrete every time. You may need planning permission, and may have to spend £10-£20,000, but added value could be £50,000 in an expensive urban location.”

If you have an existing garage, as well as providing a parking space, a garage conversion can see your home’s market value increase significantly. Research by banking group Santander revealed that the average garage conversion saw a property’s value climb by £7,250.

Renting out your parking space

Financing a garage conversion or adding in an extra parking space may be out of reach for some homeowners but renting out your current parking space to others could provide a viable alternative. Websites such as Park At My House and Park Let, allow you to advertise your space to rent for a commission. Income which homeowners may earn can vary from £50-£300 on average.

With parking prices in London hitting £4.40 an hour and with drivers having to pay a congestion charge every-time they enter the zone, potential homeowners should definitely have a parking space high on their list of purchaser priorities.

Policy Expert

We’re driven by a desire to help you find not only the best value insurance, but the right insurance for your individual needs. For more information on what‘s covered under your home insurance policy, speak to one of our experts on 0203 014 9300 or email ask@policyexpert.co.uk

The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.