What determines the Price of Property?

There are numerous factors that determine the price of property but there is one element which carries the most weighting and it is the demographics of the area.

Everybody wants to live in a nice area but defines the 'Niceness'?

Is it nice roads, big houses, gardens, schools, or access to amenities? The answer is yes all of these are contributing factors but UK being a developed nation offers a good standard of living whether it is rural village or a large city. In other words, you get a reasonable infrastructure even in a small village. The roads are the same as large cities, schools and colleges teach within the same standards, dwellings are built to a good specification, i.e. similar quality and size. Therefore, it can be inferred that a house is a house whether it is in Town A or Town B. So why is there still a large Price variance for a property 500 meters down the road?

Let's answer the exam question, which is narrowing down 'Nice'

Nice means a pleasant neighbourhood; people living in the area are civilised, well-mannered, and honest. Essentially, the demographics are better, hence a property of the same size could sell for 10-30% more in the neighbouring town.

For example Demographics have a direct impact on the calibre of students that attend local schools, this primarily determines the school's rating, as well as off course the quality of teachers. Higher school ratings attract even more people to the area, increasing demand. We know that a high demand for any product leads to an increase in its price, thus contributing to property price inflation.