Waterfront properties continue to command a high price premium in Britain

Prices for prime waterfront properties in Britain are as much as 80% higher than comparable properties inland, rising to 133% for properties with a private slipway, new research has found.

The highest premium at 105% is in the South West of England, followed by 96% in London, 51% in East Anglia, 46% in the South East, 44% in Scotland and just 25% in Wales, according to the waterfront index from real estate firm Knight Frank, compiled from valuations from experts across the country.

The index measures the potential value uplift for prime homes on the water’s edge, or within close proximity to water, compared with similar properties located further inland without access to, or a view of, water.

The most expensive type of waterfront home is one with a slipway, commanding premium of 133%, followed by homes with a mooring at 121%, homes with a pontoon at 120%, a jetty adds 110%, while private access to a beach a premium of 96% and a sea view 78%.

When it comes to the actual location on the waterfront, a home on an estuary has a price premium of 108%, followed closely by one by a harbour at 107%. A home on the coast commands a premium of 77% and by a riverside 77% while by a lake has a premium of 50%.

‘Despite relatively higher purchase prices, the lure of the water remains as strong as ever. The number of new prospective buyers looking to purchase a waterfront property increased by 24% in 2017 compared to the previous year, according to our figures,’ said Oliver Knight, research associate at Knight Frank.

‘Sales volumes were up by 8%. However, the average price of a home sold by the water in 2017 by Knight Frank was just under £1 million, a slight decrease on the long term average,’ he added.

Agents noted that the introduction of a higher rate of stamp duty for second home buyers in 2016 seems to have done little to dampen the appetite for waterfront property, though it has created a more price sensitive market.

‘The figures are underpinned by the fact that the most desirable coastal towns and cities across the UK hold a global appeal, something that can help shelter such markets from any localised uncertainty,’ Knight explained.

He pointed out that the data also shows that individuals from all over the world searched for prime waterfront property in the UK last year, led by potential buyers in the United States, Canada, Australia and Germany.

He added that the fall in the value of the pound versus other currencies following the European Union referendum has benefitted non-sterling denominated purchasers, with agents saying that demand among expats purchasers has been particularly strong.