Price premium of 24% to live in streets with royal name
May 2, 2023
Homes in streets which include the word 'royal' have an average house price which is 24% higher than the typical property value, according to analysis.
Ahead of the King’s coronation, estate agent Savills looked at how homes situated in streets with names bearing a royal theme compare with the average house price across England and Wales, at £332,000.
Using Land Registry data, the firm’s analysis of house sales found that those which have the word 'royal' in their street name have a particularly high typical price tag, of £412,445. Streets containing the word 'king' also have a typical house price which is above average for England and Wales, at £354,922.
However, properties in streets containing the words 'crown' or 'Windsor' were found to have a typical price below the average house price. Streets containing the word crown have an average house price of £330,662 while those with the word Windsor have an average house price of £295,531, according to the research.
With inflation reducing household disposable income and interest rates on the rise, some expect the reign of Charles III to get off to a slower start, with regard to property values.
ROYAL THEMED ROAD NAMES
Streets with fewer than 10 sales over the past two decades were excluded from the study. Frances McDonald, director of residential research at Savills: “The priciest streets with royal connections are primarily located in London and the South East, which is home to a number of royal residences.”
The firm looked at average selling prices between 2000 and 2022 to make the findings. It said that when the late Queen acceded to the throne in 1952, the average house price was just under £2,000 – or around £56,000 in today’s money.
Ms McDonald continued: “The pandemic-fuelled ‘mini housing market boom’ has only just put prices back to where they were in (the third quarter of) 2007 on an inflation-adjusted basis.
“On the assumption that interest rates gradually ease back from the middle of 2024, we forecast that property values will begin to recover and that the average UK house price will rise by a net figure of 6% in nominal terms over the next five years, with a reversion to longer-term annual house price growth trends thereafter.”