Waterside homes attract premiums of up to 62% in England and Wales. Coastal properties typically attract higher premiums than rivers, canals or lakes. The growing popularity of staycations, retiring to the coast, second homes and water sports are increasing the demand for waterfront properties.
There is something very special about waterside living and all over the UK, people pay a premium for homes next to water. The level of the premium on an individual property is a function of a myriad of factors including: the type of water (sea, estuary, marina, river, canal, lake), activities on the water, views, direct access to water, property type, local climate, housing market conditions, tourist appeal and transport links. There are, however, distinct regional differences.
Our study is based on a sample of 300,000 properties sold in 2015 and 2016 on or close to a waterfront. We calculated the premiums for properties within 100 metres of the coastline, river, canal or lake for all regions of England and Wales using individual sales data from the Land Registry.
Coastal Properties Command Highest Premiums
At a regional level, the highest waterside premiums were for properties close to the sea where they commanded premiums of between 36% (Wales) and 62% (North East). The highest monetary value of a coastal premium was in the South West at £78,891 – reflecting its popularity for second homes, retirement living and as a holiday destination.
The premiums for properties located close to rivers, canals or lakes tend to be smaller than for coastal properties and in some locations large areas of the waterfront remain largely industrial. Waterfront in the South West region attracts consistently high premiums for properties on the coast (45%) as well as those next to inland water (35%).
There will, of course, be many individual properties that exceed these regional averages, whether on the coast or overlooking a lake, river or canal.
The full Humberts Waterside Research Report is available here.