Does Living Close to a Hospital Increase the Value of Your Home?
Hospitals often have a role to play in the house-hunting process.
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Many homeowners feel more comfortable knowing that a hospital is nearby, just in case something should go wrong. The demand to live near a hospital also impacts house prices, and our own research has unearthed some impressive stats.
Using Dr. Foster’s Hospital Ranking Guide, we’ve looked at the best and worst-ranking hospitals to see how they affect local house prices. Here’s what we found.
How we got our property price numbers in relations to hospitals
With the help of Dr. Foster’s Hospital Ranking Guide, we re-ordered the best and worst hospital trusts based on the location of the main hospital in that trust and the affordability of property in the area.
Doing this highlighted the best and worst areas in England for potential buyers where a good or bad level of medical care is concerned. We also looked at the increase in price since each medical establishment was ranked by Dr. Foster to ascertain whether placing in the top or bottom set coincided with the change in property values.
Good hospitals equal higher-priced homes
The average house price near the nation’s top ten hospitals is slightly over £350k, which is significantly higher than the national house price average of £231k. In contrast, the average property price in areas with one of the worst-rated hospitals is £37k-plus lower than the national average. Yet, many of these areas still saw house price increases.
In pure layman’s terms, having a home near a high-ranking hospital will add value to your property. And having one near a poorly-rated one suggests a lower over property price, but a slight increase in value none-the-less.
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The average property price and change in value over the last five years in each area show that quality healthcare facilities do, in fact, coincide with stronger property values. Since its publication, the top hospitals named in Dr. Foster’s guide have seen an average house price increase of 45%, which is 11% more than England as a whole.
However, those at the tail end of the list have seen prices increase 5% less on average when compared to house prices across the whole of England.
Top hospitals for house price growth
Here are the top hospitals for house price growth, including how much house prices have increased in the areas where they’re located.
1. Guy’s and St Thomas’ NHS Foundation Trust, Southwark, London – 74% increase
2. St George’s Healthcare NHS Trust, Wandsworth, London – 60% increase
3. Imperial College Healthcare NHS Trust, Bayswater, London -60% increase
4. University College London Hospitals NHS Foundation Trust, Bloomsbury, London – 54% increase
5. Chelsea and Westminster Hospital NHS Foundation Trust, Chelsea, London – 37% increase
6. Mid Staffordshire NHS Foundation Trust, Staffordshire – 13.4% increase
7. South Tees Hospital NHS Foundation Trust, Northallerton – 11.3% increase
Lowest-ranking hospitals areas
1. Lewisham Hospital NHS Trust, Lewisham, London – 74% increase
2. Basildon and Thurrock University Hospitals NHS Foundation Trust, Basildon, Essex – 58% increase
3. University Hospital of South Manchester NHS Foundation Trust, Manchester – 35% increase
4. Scarborough and North East Yorkshire Healthcare NHS Trust, Scarborough – 3% increase
5. Blackpool, Fylde and Wyre Hospitals NHS Trust – 3% increase
Adding value to your home
Hospitals clearly have an impact on house prices, and usually for the better too. Even in lower-priced areas, proximity to hospitals can help with the overall value. The next time you think of buying a home, it’s worth checking the proximity to a hospital. And if you already have a property near one, you could be in for some good news in the form of a higher-valued home.