70% premium for waterfront properties

Waterfront properties in the South West command the largest waterfront premiums in the UK. A waterfront setting in the South West can result in an uplift of as much as 91%, a 21% increase from last year. The South East (44%) and East Anglia (41%) were the areas that command the next largest uplifts.  

Not all waterfront properties are equal, however, as properties situated on estuaries command the largest premium in terms of waterfront location, with an average uplift of 95% compared to equivalent properties a few miles inland.  Such waterfront properties are in a sheltered position, yet still benefit from the lifestyle of living on the water. In addition, the constant ebb and flow of the tide creates a wonderful environment for wildlife.  Estuary hotspots include some of the most expensive coastal towns such as Rock, Salcombe, Dartmouth, St Mawes and Newton Ferrers in the West Country and on the south coast areas such as Sandbanks and the Beaulieu River Estuary.

Harbour properties enjoy a premium uplift of about 91% and coastal properties - waterfront properties that do not overlook an estuary or harbour - are still worth 67% more than inland equivalents.  Properties situated next to a river have an added value of 67%, while lakeside homes see an average uplift of 40%.

Special features of homes situated with direct access to water, such as moorings and pontoons, can often double the value of a home. Private slipways are the most valuable feature, pushing the waterfront premium by an average of 118%. Properties with a private mooring or pontoon see their waterfront premium rise by 106% and 105% respectively, with private beach access and jetties adding 86% and 91%.

Christopher Bailey, Head of Knight Frank’s Waterfront Team, comments: “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.  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. 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.”