Following from our article Old is Gold, Part One, we ran a similar analysis in the rental market.
We found that ‘Edwardian’ properties tend to have the highest rents, with ‘Modern’ properties having the lowest rents. The chart below shows the differences based on the era in which properties were built, with the newest on the left, oldest on the right.
This only tells us part of the story, though, as older properties are often found in the centre of towns and cities where property values are often higher for a variety of other factors.
Taking into consideration the location of the property shows a different picture.
Edwardian properties, controlling for location, tend to trade at a discount to other properties in the area. New Builds tend to trade at a 7 percent premium to the rest of the market. As we found before, Georgian properties trade at the highest premium: 16 percent. The high ceilings, large basements, larger rooms, and more grand entrances being likely factors influencing the increased value.
These values change throughout the country, but perhaps knowing that a Georgian style building attracts such a premium, makes it worth it for PRS property developers to consider a return to an older style of construction.
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