An interesting new data release shows that prime waterfront properties are valued at around 70% higher than similar properties inland.
Increases
Knight Frank’s annual Prime Waterfront Index shows that waterfront properties in the South West have the greatest premiums of these property types in the UK.
A waterfront home here could lead to an uplift of a huge 91%, up 21% on the same period last year. The South East (44%) and East Anglia (41%) were the regions found to have commanded the next largest uplifts.[1]
Data from the report also shows that properties on estuaries command the greatest premiums of waterfront homes. On average, these homes have a 95% uplift in comparison to the same properties inland. Some of the most expensive coastal towns include Dartmouth, St Mawes and Salcombe.[1]
Properties close to a harbor have a premium uplift of around 91%, with coastal properties not overlooking an estuary or a harbor worth an average of 67% more than their inland equivalents. Homes next to a river were also found to have added value of around 67%.[1]
Average value premiums for waterfront homes by region in quarter two in 2015 were:
| Average value premium for waterfront properties region to region Q2 2015 | |
| South West | 91% |
| East Anglia | 41% |
| South East | 44% |
| Scotland | 33% |
| Wales | 27 |
| Average value premium for waterfront properties with the following attributes (location type and facility) present | |
| Estuary | 95% |
| Coastal | 67% |
| Harbour | 91% |
| Riverside | 67% |
| Lakeside | 40% |
| Seaview | 68% |
| Moorings | 106% |
| Slipway | 118% |
| Pontoon | 105% |
| Jetty | 91% |
| Private beach access | 86% |
Post-election boom
Christopher Bailey, Head of Knight Frank’s Waterfront Team said, ‘since the election, we have seen a positive rise in activity in the waterfront market. It would appear that a number of cash buyers at the higher end of the waterfront market have been waiting to see the outcome of the election and in particular whether a Mansion Tax would manifest itself.’ Bailey feels that the outcome, ‘has increased the confidence of waterfront buyers at the higher end of the market where we have seen properties exchanging relatively quickly with competitive bidding and sometimes above the guide price.’[1]
‘Equally, the waterfront market below £1m is picking up whereas the market between £1m to £2m is still quieter as buyers are still absorbing the stamp duty changes at the end of the year. The beginning of a new five government, low interest rates, and the safe sterling has all helped to strengthen the confidence of waterfront buyers,’ Bailey added.[1]
[1] http://www.propertyreporter.co.uk/property/70-premium-for-waterfront-properties.html