The booming electric vehicle market is bound to affect real estate prices. Due to the limited number of charging points on the road network, home charging stations are an absolute necessity for most Electric Vehicle owners.
According to the latest vehicle statistics, electric car sales nearly doubled during Covid in 2020. Electric Vehicle sales enjoyed another record year in 2021. More battery electric vehicles were sold than over the previous five years combined, hitting nearly 12 percent of all new car sales, and another 7 per cent were plug-in hybrid electric vehicles, making nearly one-fifth overall. Electric Vehicle Sales are set to continue rising.
From January 2022 to May 2022, electric vehicle sales figures continued rising with record growth. In March 2022, pure battery registrations set a record for a single month. Electric vehicles of all types accounted for nearly 28% of all new registrations in April following the March 1 license plate change.
Now, with fuel prices rising, there’s another reason for people to go electric. Coupled with the Covid effect of increased demand for more space – home offices and gardens – the soaring fuel prices are resulting in even higher demand for electric vehicles. These are clear signals that properties with driveways and more space will command premium prices.
Savills confirmed there has been an increase in demand for homes with off-street parking and more home workspace.
In suburban London, homes with driveways are now 5% more expensive than similar homes without charging capabilities, Savills said. In the most expensive parts of the city, the premium can climb to a third—the full price with a driveway is 33 percent, even more than the premium typically charged for large gardens.
In some greener parts of London, a large garden is still worth more than a driveway, where they add up to as much as 10 per cent of the property value, Savills said.
A nationwide lack of vehicle charging points means the price premium for homes with off-street parking is likely to persist for some time. In suburban London, a house with a driveway can add £23,500 to the price of a £500,000 home, Savills said.
Will Watson of The Buying Solution told The Daily Telegraph that off-street parking in London could easily add 20 per cent to the price of a family home. He says:
“The huge concern for London is that people will have an issue charging electric vehicles if they don’t have a parking space. This premium is set to potentially get a lot higher.”
So far, these price premiums have mainly hit the capital, as London is where most people in the country buy electric cars. However, real estate experts predict that the price premium will quickly spread to other major commuter towns in the home counties and beyond.
Lucian Cook, head of Savills Residential Research, one of the country’s most respected property market commentators and director of the Savills research team since 2007, said that the places in the country where electric vehicle ownership greatly outnumbers charging points are those most likely to see a big impact on home values. He says:
“As the gap between demand for electric cars and public charging points grows, we can expect to see homes that offer private charging provisions to come at a premium.”
Likewise, Charles Davenport of Knight Frank estate agency Elmbridge told The Telegraph that off-street parking is becoming a transaction barrier for Electric Vehicle buyers.
He said: “We had a house in Cobham and the couple looking at it had an electric car and they said sorry we can’t because there is no off-street parking and it is absolutely essential for us.”
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