There’s a lot to consider when looking to buy a new property. You not only have to think about the property itself but also the area in which it finds itself. A key factor in determining the desirability of an area is the local crime rate, which consequently has a big impact on the value of property in that area.
As a homeowner, it can be frustrating that something out of your control can affect the value of your home so much, especially if your property is of high standard in and of itself.
In this article, we’ll look at the extent to which local crime rates affect house prices and what you can do as a homeowner to minimise the impact of a poor crime rate.
How do crime rates affect property value?
The most direct way that crimes rates affect property value is through reduced buyer interest. If buyers know that your property is situated in an area renowned for anti-social behaviour, many may avoid your property altogether or seek a lower offer. As a result, you may have to lower the listing price in order to try and generate more interest. Not all types of crime will have the same impact on house prices, however. Burglary and violent crime will have a much bigger impact on house prices compared to more petty crime.
Home insurance will also be more expensive if insurers estimate there is a higher chance that claims will be made. Which can also put off homebuyers.
Unfortunately, lower house prices caused by a high crime rate can often result in a cycle of crime as the lower house prices mean people of a lower economic background end up living in the area, with poverty being a key driver of crime. This only serves to compound lower house prices due to crime and is an unfortunate cycle which is often hard to break without significant investment from the council or government.
What can I do to combat the effects of crime rates on the value of my property?
The best measures you can take to reduce the impact of poor crime rates revolve around home security. Having a modern burglar alarm system, secure windows and a robust front door with sturdy locks will reassure buyers that your property stands a better chance of deterring criminals. A CCTV system will also boost the value of your property in the face of a high crime rate and put off burglars. Ensuring the exterior of your property is well lit will also aid with this and discourage other types of anti-social behaviour occurring outside your property.
Forming a neighbourhood watch group is another good step to take and has been shown to reduce crime rates by 35% in some instances. These groups see neighbours band together to collectively look out for crime and suspicious behaviour, reporting to the police if necessary. These groups can also help to reassure buyers.
While these measures will help increase buyer confidence, they may not increase the value of your property by much. Nevertheless, having interested buyers is the most vital part of selling your property, so if you can achieve this, you stand a much better chance of selling and not having to lower the price.
This article was written by a quick house sale company We Buy Any Home. If you’re wondering “how can sell my house fast”, head to the We Buy Any House website for more information relating to all property related enquiries.