High levels of crime in the area, can seriously de-value property value in the UK
The demand for property and house prices can be drastically affected by crime levels
House prices can be seriously affected by many factors. These factors contribute to the average house prices in the area. The home owner cannot control all of the factors, surrounding the quick sale of property have no control on a buyers ultimate choice and decision to buy. Buyers are however, swayed by the area the property is encased in. Nobody would purposefully choose a crime ridden area to settle into. The crime figures were not available for a specific area, until recently you are able to log on to the internet using certain specific sites, and logging on to local police force’s crime statistics.
Perspective house buyers can now view statistics relating to crime easily. This assists them and serves as a guide to whether or not to purchase property. These crime figures are used to determine ‘bad areas’ where crime is high. This has a detrimental affect on property prices in these crime ridden areas.
Crime and average house prices, is there a connection? Experts give their verdict.
There is already intrinsic studies stating that the levels of crime can be closely linked to average house prices in the UK. Professional surveyors associations are concerned, that the release of these crime figures, may scare off potential buyers and have an alarming effect on housing values and the market as a whole. It could lead to the drawing up of league tables, with figures that illustrate and highlight property, and provide an overall picture of the area. this will affect local house sale prices and property values.
The Home Office, claim that there isn’t a link between crime figures that have been published and house prices. A differing opinion to the R.T.C’s who suggest there is. The Home Office is very sensitive. They feel that statistics relating to anti-social behaviour, vehicle crime, burglary and street robbery in specific neighbourhoods, should be available and widespread to potential house buyers.
Whatever, the experts recommend about releasing or not releasing statistics to the general public. Areas with high levels of crime, can affect demands for private housing in crime-ridden areas. This will undoubtedly have an affect with the general lowering of property prices.
How can the effect of crime on house prices be changed around?
Sadly, little can be done to alter the effect that crime has on property value by homeowners. The Home Office suggests starting and setting up neighbourhood watch schemes. Involving people in your locality, noticing and being more aware of instances regarding crime and informing the authorities.
However, these schemes are hard to keep going, if all the residents aren’t happy to be involved. To buy a new home is one of the biggest investments in your life, for most people. With such uncertainty in today’s economic climate. Loss of jobs and earnings, buyers will choose a property very carefully, and within their budget. Local amenities are of high importance, including local crime rates, and school performances and local transport. With the availability of the internet and its search facilities, prospective buyers can research more thoroughly, and statistics and information is at their fingertips. Portals such as Zoopla can be used, and assist house buyers on their hunt for a future property. results can specify areas with lower-than – average house prices and problem areas, with crime rates or anti-social behaviour.
Homeowners that need to sell property quickly, must recognise that living in a high crime ridden area, lower priced house offers way below what they should be will be offered. Depending on how quickly the sale needs to happen, they maybe forced to accept the lower offer. The installation of security measures, may make life more difficult for criminals. This could make the difference and help find buyers more quickly. Despite these improvements to home security it may still have an affect on the final sold prices.
Are there links between the average property values and crime ?
it is very difficult to find any defining proof of a link between crime rates and property values. Neighbourhoods in deprived areas have lower than average house prices. A professional study in 2003, drew a correlation between graffiti and vandalism, which had an effect on property prices, but burglaries were unaffected. Crimes that are visible, such as vandalism and graffiti have a very negative affect on house prices. This conclusion, from the study, highlights and gives a obvious signpost to potential buyers.
Megan’s Law in the USA has impacted on local prices of property. At the moment, no such law exists in the UK. As part of the law, a register of convicted sex criminals are identified and where they live. Studies show, that houses next to these offenders, achieve a lower selling price, than those homes in similar towns and cities. If there was a subsequent scheme in the UK, the same results would probably be seen. Resulting in price and demand for property.
It is no consolation , for homeowners who live in areas of crime. There is no way of changing the decline in the property in the area and house price.