Out with a coffee and in with a pizza to see your house rise in value

The aroma of coffee or the so called “cappuccino effect” in your neighbourhood is no longer an indicator that a residential area is about to move up a gear.

A survey by property website PrimeMove.com reveals that the arrival of a pizza restaurant – specifically PizzaExpress – is a very good sign that an area is about to “arrive”.

Property prices have risen by an additional 4% over and above average house price inflation, where PizzaExpress has opened in the last 12 months.

But it’s not just the pizza effect. Other visual clues that point to a potential area of growth are houses being redeveloped, conversion of former commercial premises round the back of houses, shingle gardens with potted bay trees, a gaggle of German cars and private day nurseries.

Henry Pryor, founder of PrimeMove.com, said: “The old pointers to an area were new coffee shops but now they are as common as mobile phone outlets. Disregard both. Look for the things that the middle class young professional craves – a vegetarian pizza, a glass of Sauvignon Blanc in a smoke-free bar and an alternative medical practitioner.

“These seemingly trivial wish lists can indicate when as area is throwing off its working class credentials and becoming a middle class enclave. The skill is to spot those signs of change as early as possible and we have identified that the arrival of a PizzaExpress is a strong sign that change is taking place and house prices are likely to rise.”

Some of the areas where PizzaExpress is opening in 2007:

Milton Keynes*
Falmouth
Worcester*
Kendal
Brighton*

*indicates a second restaurant opening

“Our research suggests that these five areas will all benefit from an up turn in property prices over the course of this year. Where new restaurants opened in 2006, maximum property prices either saw a recent peak and were beginning to climb again, or the restaurant opened when the market is at its peak, as occurred in Warwick."