Waterfront property in demand as Covid inspires buyers to make lifestyle changes

UK waterfront properties are worth an average of 49% more than equivalent homes located away from the water, new research shows.

Since the onset of the pandemic, people have sought space and greenery, driving the country market to a record performance, and waterfront property has been at the forefront of this trend.

Waterfront property values increased by an average of 2.1% during Q2 2021, which meant average prices were 12% higher than a year ago, according to Knight Frank’s Waterfront Index.

The largest waterfront premium is for homes around an estuary, as it was 12 months ago. Prices for these homes are on average 72% more than comparative properties located a mile from the water.

Coastal and harbour properties had an average premium of 61% and 60% respectively compared to homes located further inland. Inland properties next to a river have an average premium of 21%.

More than a quarter (27%) of respondents to Knight Frank’s sentiment survey conducted last month said the experience of successive lockdowns had made buying a waterfront property more likely.

The waterfront lifestyle has continued to appeal to second-home owners, and in the year to March 2021 the proportion of waterfront properties purchased as second homes outside London hit a 13-year high at 20%.

“The waterfront market offers a different way of living, which many have sought since the pandemic. However, with tight supply and high demand there has been plenty of competition for the best properties, which has led to upwards price pressure,” said Chris Druce, senior research analyst at Knight Frank.

The number of UK waterfront properties available for sale in June 2021 was 37% lower than 12 months earlier. In the same period exchanges were up 9%.

For more, including a market overview, see the latest edition of Waterfront View.

Image by Ian Lindsay from Pixabay