House prices and parking spaces

Parking spaces are a major perk for most buyers. Homes with off-street parking options regularly sell for more than equivalent homes without parking spaces. Whether it’s actually worth fronting the cost of a driveway or garage however, is a different story.

Parking options for your property

There are four main options for parking but these will depending your property and local regulations:

1. Driveways
2. Off-street parking options
3. On-street parking spaces
4. Garages

In an ideal world, all homes would come with dedicated off-street parking spaces. In the real world, existing homes are limited by architecture or location. Older terraced houses for instance, often sit right on the edge of the street, preventing them from having driveways or garages.

Driveways

How much value does a driveway add?

Driveways are expensive, and home improvements should always generate a return on investment. Some experts estimate that adding a driveway can increase the value of your home by 5–10%. That’s between £5,000 and £10,000 for every £100,000 of your home’s current value. Well-built driveways incorporate suitable drainage, and they must legally include dropped kerbs.

How much do driveways cost?

On average, driveways cost between £30 and £90 per square metre to install, depending on geographic location and the type of material you use. Homeowners in larger cities often pay more than people who live in rural areas, while block paving and gravel tend to be the cheapest driveway building materials at £30 to £50 per square metre. At £40 to £60 per square metre, tarmac comes next, closely followed by resin. Finally, at £50 to £100 per square metre, concrete driveways usually cost the most.

How much do dropped kerbs cost?

The price for dropped kerbs vary from council to council, but the average cost for a complete job is usually £800 - £1200, with an application fee of £70 - £100. However, there may be additional costs to take into account, including council inspections and labour fees.

Off-street parking

How much value does off-street parking add?

If you have the space and the financial resources to add an allocated parking option, you’re likely to gain financially when you sell your property.

Some reports indicate that houses with off-street parking spaces fetch up to 13% more than equivalent homes without private places to park. In real terms, if your home’s current appraised value is £300,000, buyers might pay as much as £39,000 more if you add an allocated parking option.

Driveways represent one type of off-street parking space, but they’re not the only kind. Other off-street options include:

• Private indoor or outdoor parking lots
• Private multi-level car parks
• Private automated car parks

Parking Spaces

How much value does a parking space add?

On-street or off-street, parking spaces can add up to 13% to your home’s value. Unfortunately, spaces in larger cities are prohibitively expensive. In 2019 for example, drivers paid an average of £219,000 (or £1,731.60 per square foot) for parking spaces in London. However, this average includes more expensive areas, as well as less expensive boroughs like Enfield and Redbridge. Parking spots in these affordable parts of London cost £7,200 and £10,417 respectively in 2019.

Is a parking space worth it?

Most experts would agree that they’re sound investments. Homes with dedicated parking spaces are generally more valuable than equivalent homes without parking spaces. Parking also presents an opportunity to make some money, with some homeowners renting their spaces out for up to £200 a month.

Garages

How much value does a garage add?

According to a report by Nationwide Building Society, adding a single garage could increase your home’s value by as much as 11.1%. The same report found that double garages may increase value by as much as 20.4%.

Dropped kerbs

How much value does a dropped kerb add?

Homes with dropped kerbs and driveways sell for 5-10% more than similar homes with on-street parking alone. Dropped kerbs are areas of the kerb that are dropped to street level to make it easier to leave the road. You can’t legally have a driveway without one, so dropped kerbs are not only desirable, but essential if you plan to build a driveway.

Will a parking space increase my home’s value?

Dedicated parking spaces, whether on-road or off-road, seem like perfect solutions to parking trouble, high insurance premiums, and expensive car park fees. Having a parking space or dedicated place to park can increase your home’s value - but there is a catch. If your home’s appraised value is already close to the price ceiling for similar homes in your area, your ROI on a parking space might not amount to much.

Before you invest a lot of money in a driveway or in a dedicated on-street parking space, look at the maximum prices that equivalent houses in your surrounding area have sold for. Then, consult an appraiser to get an expert opinion of how much your property might be worth.

Summary

Parking spaces are a ‘must have’ for homebuyers. Not having to worry about where to park your vehicle is a major bonus, especially if you lead a busy lifestyle. If you’re planning on selling your house, adding a parking space could boost its value.

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