Horse racing is one of the world’s most popular sports, and while Texas has its share of racetracks like Lone Star Park, the impact of racecourses on real estate prices is a global phenomenon. In the UK, living within striking distance of some of the biggest courses in the world could be a lucrative business for some.
However, living near one of the notable courses could also come at a price based on the market values of some of the houses up for sale with postcodes of those that share one with racecourses.
Zoopla stats support that argument, with the data found that house prices within postcodes of mixed racecourses commanding a staggering 25.3% price premium.
The same stats also find that house prices are a 18.5% premium for national hunt courses in the same area code, and flat racetracks having a 15.2% premium on house prices in the local area.
Mixed Race Course Locations Have High Premium
The stats found that mixed racecourses have a higher premium on housing prices in the region. A mixed racecourse is simply one that stages both jumps and flat meetings, meaning that there is racing all season round.
The highest average price is found to be £346,000, with many being located near to tracks in the London area. In terms of comparison, the national hunt average for postcodes is set at £258,000, while the flat racing average is slightly higher at £276,000.
There is little surprise that the vast majority of the most expensive racecourses to live near in England are found in the south. Coming out on top is Sandown Park in Surrey, which has housing prices at a staggering £905,000.
Incredibly, that is a higher average than Ascot, which stands at £694,000. Epsom comes out in third, while Goodwood and Windsor round off the top five. While living near racecourses has a big impact on the prices of these locations, it should also be worth noting that four of the top five have direct links to the nation’s capital.
Higher Averages Across the Nation
Outside of London, the stats found that premium prices are also placed on other locations that share a postcode with a racecourse. A key example can be found in the forms of home located in the LS22 postcode, which is shared by Wetherby in West Yorkshire. Homes in the postcode average at £348,000, which boasts a staggering 119.1% premium based on the average cost of buying a house elsewhere in the same region.
Southwell in Nottinghamshire also has a massive 111.7% premium on homes based on the typical average across the region. That trend isn’t just found for homes outside of London, as there is a 111.4% increase in terms of average price of homes that share the SL5 postcode with Ascot in comparison to other houses in the Berkshire region.
The increased averages also show further trends at other areas across the United Kingdom. There is a 64% increase on prices near Bath racecourse in comparison to the Somerset average, while houses in the NE3 postcode shared with Newcastle Racecourse are 55% higher than the rest of the region.
Why Could It Be A Wise Investment?
Despite paying a premium on the cost of the house in the region of a racecourse, there are major perks that could come with the investment.
One of the most notable is the fact that tenants can opt to rent out their house for periods around some of the major events that are staged at the track. That is none more evident than in the Cheltenham or Louisville region – where the US TwinSpires Kentucky Derby happens – as many locals look to put their houses on AirBNB for the four-day Festival meet.
Costs during this period in hotels range from upwards of £1,000 for a three-night stay, meaning that tenants can put down a significant amount in terms of an asking price should Racegoers wish to stay in their house.
As well as having huge benefits financially, it could also help those with financial constraints to take advantage of the location of their house in order to make some money back.
Does Sport Have A Huge Impact Overall?
It isn’t just horse racing tracks that have a major impact on real estate prices, as homes near other sporting venues also come at a premium. For example, homes near the iconic Lord’s cricket ground cost an average of £1.4 million.
Although, it could be argued that a key reason for this is also largely down to the location being found in the middle of London. Chelsea is also the highest ranked soccer stadium in the Premier League in terms of real estate.
A house near Stamford Bridge averages at £1.2 million, which far outweighs the prices of housing in other cities and areas in the south. It is also a much bigger average than the cost of housing near other soccer stadiums such as Old Trafford, Anfield, and the Etihad, which is low in comparison.
