BRICKS and mortar account for only 59 per cent of a property’s market value in the UK, with factors such as local amenities, schools and public transport accounting for over two fifths, a new study has found.

Overall, the average sale value of a house is £114,000 more than its rebuild cost, according to the analysis from Direct Line Select Premier Insurance.

Analysis of property prices for three-bedroom homes across 12 major UK cities reveal that the average house price of £277,608 is 59 per cent higher than the projected rebuild cost of a similar property, which is valued at £164,000.

It shows that London, Brighton and Bristol have the highest location premiums in the UK.

In London homeowners typically spend an average of over £647,000 for a three-bedroom property, more than three times the average rebuild cost of £205,000.

Indeed, in the capital the property premium at £442,571 is in fact so vast, it is higher than the average market value of homes across the UK at 216 per cent.

“Although people may be surprised by the amount of value placed on a property’s qualities beyond bricks and mortar, this analysis shows just how much intangible benefits such as local amenities, location and transport links, add to the price of a property,” said Nick Brabham, head of Select Premier Insurance.

After London, Brighton has the second highest location premium at 139 per cent, with residents paying more than double the estimated rebuild cost to purchase a property in the city.