Why the electric car revolution is raising your house price in 2022

·3 min read
electric car revolution raise increase boost house home price 2022 property market ladder vehicle environment
electric car revolution raise increase boost house home price 2022 property market ladder vehicle environment

The switch to electric cars means driveways add between 5-10pc to house prices in 2022, analysis shows.

Soaring petrol prices mean more motorists are switching to electric cars, which is leading to a surge in demand for properties with off-street parking that can accommodate charging points, research from estate agency Savills found.

In suburban London, a home with a driveway now adds 4.7pc to the price. A driveway in London's most expensive postcodes can boost the price by 33pc – more than the value of a large garden which adds 26pc, Savills said.

A big garden is still worth more than a driveway in leafy parts of the capital where they increase the property value by 10pc.

The shortage of charging points nationwide means house price premium for homes with off-street parking has surged since 2019, according to Savills. It means a driveway in suburban London can add £23,500 to the price of a £500,000 home.

Will Watson, of agents The Buying Solution, said off-street parking in London could easily add as much as 20pc to the price of a family home. He said: “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.”

The price jumps have been most noticeable so far in the capital, because it is the place where most people have electric cars. But experts say this driveway premium will soon spread fast to prime commuter towns in the home counties.

Electric vehicle infrastructure is relatively well-developed in central London, but in the suburbs the shortfall is acute. While in Westminster there are 2.5 electric vehicles for every public charging point, in Dacorum in Hertfordshire, the ratio is 57. Similarly in Elmbridge, Waverley and Mole Valley in Surrey, the respective ratios are 51, 46 and 45.

Lucian Cook, of Savills, said places where electric vehicle ownership greatly outnumbered charging points would see the biggest impact on home values.

He said: “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."

Charles Davenport, of Knight Frank estate agents’ in Elmbridge, said off-street parking was becoming a deal-breaker for buyers with electric cars.

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.” The biggest charger shortfalls are all in the extended London commuter belt in the South of England. Other hotspots include Tandridge and Woking in Surrey, as well as Reigate and Banstead, St Albans and Sevenoaks.

In two years, the combined number of electric cars has surged by 176pc, while the number of charging points has increased by only 72pc.

At the end of 2021, there were 14.75 electric vehicles for every charging point across the UK, compared to 6.35 at the end of 2019.

This article is kept updated with the latest information.

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