Since the Premier League is the highest level of English football, research has shown that promotion to this league can have a big impact on local property prices.
So, let’s give our congratulations to Nottingham Forest, Fulham and to Bournemouth and who will play in the Premier League for the 2022/23 season.
And to the local homeowners because one study has found that, on average, towns and cities which are home to a Premier League club see a significant increase in house prices after their team is promoted to the topflight.
Of course, there is no guarantee that your home will increase in value if your local team is promoted – it depends on several factors. These include:
Your property's location
How many other homes are up for sale
The price
Demand from potential buyers.
But if you are thinking of selling up, it might be worth waiting to see if your team makes it to the Premier League before putting your property on the market!
How much will your home increase by?
Research from one estate agent comparison site found that on average, towns and cities which are home to a Premier League club see house prices increase by 3%.
However, this is not always the case and, in some instances, such as when the team has been recently relegated, prices may decrease.
As with any property purchase or sale, location is key. If your home is located close to the football ground, you are more likely to see a bigger increase in value than if it is further away.
This is because those looking to buy a property near a Premier League ground may be willing to pay a premium for the convenience and proximity to their team.
Similarly, if there are few other homes up for sale in the area, this will also push prices up as buyers compete for scarce properties.
Prices don't always continue rising
While promotion to the Premier League can have a significant impact on local property prices, it is not always all good news.
The research also put together list of the best performing areas over that past two seasons and it found that those homes that are close to the Wolverhampton Wanders’ Molineux Stadium saw the best rise of 22%.
That area was closely followed by homes close to Old Trafford, the home of Manchester United, with prices increasing rose by 21%. In Liverpool, homes close to Anfield and Goodison Park rocketed by 20%.
The next best performing area for house price increases was Leeds United and homes close to Elland Road.
The survey also found that prices dropped by 4% for properties located near to Arsenal’s Emirates Stadium, and Newcastle’s St James’s Park in Newcastle saw prices fall 3%.
Manchester City’s Etihad Stadium saw nearby house prices slipping 2%, and prices dropped at Southampton’s St Mary’s Stadium by 1%.
A spokesman for the site said that their survey reflects the property market’s diversity and how high house prices do not result necessarily in house price growth.
Therefore, while promotion to the Premier League may have a positive impact on local property prices, it is not always a guarantee.
How close must you live to a Premier League ground?
It's also worth noting that you need to live close to the ground to enjoy a premium in prices - but how close is that?
The answer comes from the University of Groningen in the Netherlands which found towns and cities profit from a team’s promotion because of increased tourism and broadcast television income - and house prices do rise.
The study looked at those teams that were promoted between 2012 and 2015 and used data from the Land Registry. Their results showed a positive impact on those homes that were less than three miles from the football ground.
Researchers found that a property sold before and after promotion located next to the stadium saw a premium price rise of 2.84%.
These findings are significant as they show that promotion to the Premier League can have a big impact on local property prices.
Consider the long-term effects
Of course, it is not just promotion to the Premier League that can affect property prices – relegation can also have a significant impact.
A study by LSL Property Services found that, on average, house prices in towns and cities with a team that has been relegated from the Premier League fall by 2.5%.
So, while there may be a short-term benefit to having a Premier League club in your town or city, it's worth considering the long-term effects of relegation.
And with promotion and relegation always a possibility, changes in your local team's fortunes could have a big impact on local house prices.
Another study found that house prices where a team is relegated can drop by up to 5%. That would wipe out any profits made immediately after promotion.
You might also struggle to sell your home - though there will always be keen football fans wanting to live close to their home ground.
That means homeowners living close to the grounds of Norwich City, Burnley and Watford - who have been relegated in 2022 – are likely to see their house prices fall.
So, while there may be a short-term benefit to having a promotion-winning Premier League club in your town or city, it's worth considering the long-term effects of relegation.
The impact that a Premier League club can have on local property prices
Whether you're a football fan or not, the impact that a Premier League club can have on local property prices is something worth considering if you're thinking of buying or selling in an area with a team in the topflight.
However, with promotion and relegation always a possibility, it's important to be aware of the potential risks and rewards involved.
And by judging carefully the market and a team’s results, you could invest in a property that then sees the subsequent price bounce from the team’s promotion – and a premium for being very close to the ground.