5 Major Ways in Which Location Affects Property Value

Table of contents

Key takeaways:

  • Go through the 5 major impacts of location on property value that can hinder your decisions.
  • Associate with professionals that can help you minimise the risk and increase the chances of your profits.

As of December 2023, the average house price in the UK is £284,691. Property prices have risen by 0.1% compared to November 2023, and fallen by 1.4% compared to 2022.

These are the average overview of the real estate market.

However, there are multiple factors and impacts of location on property value which lower or increase the property price.

What are the major ways in which location affects property value?

Let’s find out.

5 Local Factors That Affect Property Value

Multiple factors affect property value, but we have filtered the top five factors to help you make an informed decision.

Proximity to schools

The proximity of your property to local schools is highly important and helps to define desirability and value. If your property is located near a reputable school, it will have a higher demand because parents always want to provide the best education to their children.

With increasing demand, the price of a property also increases. Although, it can be more expensive for you to invest in a property nearby schools, but if you own a property in that area, its value will appreciate quickly compared to properties located in lesser-demand areas.


The availability of shopping centers, parks, restaurants, and other amenities plays an important role in determining the desirability and value of a property. Properties with more amenities are attractive to buyers as they offer both entertainment and convenience, which can increase their prices quickly compared to underdeveloped areas.

Another major factor that can influence the value and desirability of a property is the proximity to healthcare facilities such as clinics, hospitals, and pharmacies. With easy access to healthcare services, especially in emergencies, you cannot ignore these properties.

Residents with medical conditions or who require regular medical care will be willing to invest a higher price because the property is near healthcare facilities. 

Crime rate

The crime rate is an important factor that can impact the desirability and value of your property. If the property is located in a high-crime area, it will have lower desirability and a lower resale compared to areas with lower crime.

So, you have to analyse the crime rate of the area before investing in a new property. You must ensure that your buyers feel safe in their homes and neighbourhood, which can help you book a decent amount of profits upon resale.

Public transportation

Another important factor that influences the value of your property is the proximity to public transportation. Your property area must have quick public transportation access, especially in urban areas where traffic congestion is a major roadblock.

Properties that are close to public transportation are more valuable compared to those that are not as they offer the buyers an easy way around the city without requiring a car.

Other factors

Although the above-listed factors are highly important in deciding the property value, there are others such as the locality and type of crowd in the surrounding area that have an impact on the price.

For example, a property that is located in a peaceful neighborhood with friendly people can be more appealing to buyers seeking a safe and quiet environment. But if a property is located near a busy street or an area with nightlife, it can be more appealing to a younger crowd.

A property that is near to commercial areas can attract entrepreneurs and professionals who are looking for a place to stay near their workspace. 

Property Location and crowd type can help you decide on investing in a property that aligns with your goals or the target market you want to cater to.

There can be many complications related to finalising a property and making an investment in different areas across the UK; that’s where you can trust professionals.

Pluxa Property Got You Covered

The location of the property is a significant factor, but to minimise the hassles with the research and completing the investment, you require professionals who can assist you at every step.

Pluxa Property stands out as a premier property investment consultancy in Birmingham. We specialize in a variety of investment strategies, including: 

  • Rent to serviced accommodation
  • Buy to serviced accommodation 
  • Overseas investment
  • BRRR investment
  • New build apartments

Our expertise is in identifying profitable property deals, ensuring investors achieve substantial rental yields and capital appreciation.

Whether you’re a first-time buyer eager to step into the property market or an experienced investor looking to expand your portfolio, Pluxa Property offers tailored solutions to meet your investment goals. 

We provide a comprehensive service, from sourcing the right property to maximizing your investment returns.


How does location impact the value of homes?

Location is highly important in determining a home’s value. If a home is situated in a desirable area, such as near good schools, amenities, and transportation, its value is likely to be higher. Conversely, homes in less desirable locations, with higher crime rates or fewer amenities, tend to have lower values.

What factors of the local area will impact property value?

Several local factors can impact property value, including:

  • Schools: Properties near good schools tend to have higher values because parents prioritize their children’s education.
  • Amenities: Proximity to shops, restaurants, parks, and entertainment can make an area more desirable, boosting property values.
  • Crime rate: Lower crime rates make neighbourhoods more attractive, positively affecting property values.
  • Public transportation: Easy access to public transport can increase a property’s desirability, especially in urban areas where commuting is a common concern.

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