How your neighbour could wipe up to £57,000 off the value of your home

12 April 2024 , 14:36

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You neighbour could knock off tens of thousands of pounds of the value of your home (Image: Getty Images/iStockphoto)

Your neighbour could potentially cause the value of your home to drop by tens of thousands of pounds.

When selling a home, many homeowners will work hard to make their property look the best it can for prospective buyers. However, the way your neighbour's home looks is not really in your control and it could impact how much you sell your home for. According to a study by Churchill Home Insurance the state of a neighbouring home can decrease the value of a property by around 11%.

On the average UK property, that could mean knocking off £31,000 off the listing price, while in London it could equate to almost £60,000 off on average. The study, which surveyed 253 estate agents around the UK, also looked at the neighbour eyesores that most impact the sale of someone's home.

Around 22% of estate agents said an overgrown garden was likely to have the biggest impact, while 20% said rubbish or junk in the driveway or front garden could impact the cost. Overflowing gutters (20%), several cars parked on or around the property (19%) and garden ornaments and statues (18%) could also cut the value of neighbouring homes, estate agents said.

The research also revealed that some sellers deliberately time viewings to make houses look more favourable, avoiding the risk of exposing potential buyers to issues from a neighbouring property, such as the playing of loud music, noise from pets, or simply meeting the neighbours altogether.

Life on one of the UK's cheapest streets where homes sell for just £25,000

The survey found that more than four in five believe it's important for homeowners to chat with their neighbours about their poorly maintained property before putting the house on the market. The housing experts at Churchill also said offering to do the work yourself could be beneficial.

Sarah Khan, head of Churchill home insurance, said: "First impressions count when it comes to selling homes, with the sale price often negatively impacted when the neighbouring property looks scruffy. If you have a good relationship with your neighbour, it is worth approaching them to see if they would be happy to make changes to the appearance of their property.

"Investing a few hundred pounds in a gardener to tidy up next door's front garden could pay huge dividends when it comes to selling your home, a win-win for both you and your neighbour."

If you are to approach your neighbour, you can either speak in person or write them a letter. In all instances, you should try and be kind, understanding and reasonable in your discussion as you do not want to spoil the relationship you already have. Some local authorities offer a free mediation service — though both parties need to be willing to engage in the process. Legal action should be the last resort according to housing experts as formal disputes must be declared when you sell.