Behind closed doors
Compared to most other European countries, the UK has one of the highest proportions of homes built before the second world war, often called period homes. It is common knowledge that older homes hold onto their value better than some newer ones. Of course it’s not just age - the value of these homes also depends on their location and condition. Although no two houses are ever quite the same, and condition and location are the same, the architectural style tends to be the biggest determinant of price.
More +£1 million homes were built in the Victorian rather than in any other era. Victorian homes make up just 13% of all houses in the UK, but 22% of those sold for over £1 million . But there is a big mix of Victorian homes, many of them small and inexpensive. Overall just 2.5% of Victorian homes are worth seven figures or more.
It’s Tudor homes that are most likely to be worth +£1 million. Six per cent of the 40,000 Tudor homes in the UK have values in seven figures. Here buyers are paying for rarity and distinctive character. At the other end of the spectrum, homes built between 1960 and 1980 are least likely to be worth over a million. Some of this is down to today’s style preferences, but it’s is also down to where they were built. A high proportion of the homes built in these two decades were in new towns such as Milton Keynes and Harlow, which are still establishing themselves.
Today there is a finite supply of older homes and because of this buyers are generally willing to pay more for them – particularly in parts of the country like London and the South East of England where land restrictions mean that newer homes are less likely to be built in the best locations. But it is also because it tends to be the best homes in each era which survive. So maybe in 100 years’ time it will be the best 1960s homes that have survived will carry a premium!