Could your parking space earn you a small fortune?

Could your parking space earn you a small fortune?

Although UK house prices continue to rise, property sellers should always be on the lookout for ways to add value to their home and entice prospective buyers.

We’ve all heard that getting a loft conversion, building a conservatory and concentrating redecorating efforts on the kitchen are sure-fire ways to help your home sell for a handsome price, but one thing that sometimes slips through the net is just how much value having a parking space could add to your property.

Let’s face it, whether you’re a young professional, retiree, mother, father or student; often a car is a necessity. In the last quarter of 2015, the Society of Motor Manufacturers and Traders recorded that there were 26 million licensed cars in the UK; an increase of 600,000 in the last year alone.

So if you're thinking about putting your home on the market and do have off-street parking facilities, here at Tepilo we believe you should emphasise this as a key selling point.

According to research from Direct Line’s Select Premier Insurance, developers of new properties are able to charge more for homes with a parking space – an additional 5% of the property's value on average.

However, dependent on location, a parking bay can cost up to an extra 13% on top of the property’s value. In London locations such as Battersea, parking bays are being sold for £65,000 a piece.

If a parking space can add such an amount to the cost of these prime London properties, then it could well add a little something to the value of your home when you come to sell.

This would of course be dependent on demand for parking in your local area, because if parking bays are few and far between, then you’re of course likely to generate a higher price.

London and the South-East in particular are areas where the number of cars is rapidly increasing, yet spaces to stow vehicles aren’t.

Even if potential buyers viewing your home don’t own a car, it’s worth informing them of the benefits of owning a property with a parking space included in the price.

In many urban areas, it is becoming increasingly popular for homeowners to rent out their parking space if it's of no use to them. So if your property is within a city’s commuter range and you don't use your space, you’re likely to find a renter with ease.

If your property doesn’t include a parking space or driveway, but you want to make your home more attractive to prospective buyers, then one popular alternative is completing a garage conversion to enhance selling potential.

Research by Nationwide unearthed that a garage conversion is likely to add a further 11% to a property’s sale price, some added cash no seller would want to refuse.

If you have enough cash to splash, adding a double garage could be a particularly profitable move, as many families have more than one car these days.

Not only this, but a double garage could also pave the way for adding further rooms above, such as an additional bedroom or playroom.

Thinking a little bit outside the box – if you’re really keen on adding value by having a parking space, you could pave over some of your front garden space.

Often front gardens are under-utilised, and can be difficult to maintain, so it's not uncommon for homeowners to pave part of it to make way for some off-road car space.

Although this could cost anything between £10,00 and £20,000, in an urban area where parking costs are premium, it could add something like £50,000 to the sale price of your property.

The way that the property market is currently performing, sellers in many areas of the country can sit back and reap the rewards of recent house price growth.

However, if you’re a proactive seller and want to increase the value of your property even more, then thinking about parking facilities should definitely be near the top of your list.