Fancy living by the water? You’ll need deep pockets! Brits pay almost 50% more for a waterfront view

It’s no secret that we love to be beside the seaside, but new research reveals just how much we’re willing to pay for the privilege of a waterfront view.

According to estate agent Knight Frank, homes by the water now command a 48% premium compared to similar properties inland.

That means if you’re looking to buy a house by the coast, a lake or a river, be prepared to shell out almost half as much again as you would for a similar property further inland.

South West Commands Biggest Premiums – but Prices Are Dipping Across the Board

The research reveals that the most sought-after – and expensive – waterfront properties are located in the South West, where buyers pay an average premium of 76%. The South East follows closely behind at 51%, with Scotland in third place at 42%.

However, while the waterfront premium remains high, prices have dipped slightly in the last year. The average price of a waterfront property in the UK fell by 2.7% in the year to February 2024, compared to a 5.1% drop in the wider property market.

Estuary Views Most Desirable

But which type of waterfront property commands the highest premium?

According to Knight Frank, the biggest price tags are found on estuaries, where buyers pay a staggering 75% premium. Lakeside and lochside properties are close behind at 71%, followed by coastal homes at 66%. Properties overlooking harbours command a 42% premium, while riverside homes have the lowest premium at 22%.

Demand Remains Strong Despite Price Dip

Despite the slight dip in prices, demand for waterfront properties remains strong, with viewings up by 25% in the year to early 2024 compared to the five-year average (excluding 2020). Offers accepted on waterfront properties also jumped by 12% over the same period.

Hamish Humfrey, Head of Waterfront at Knight Frank, says: “Properties nestled along rivers, lakes and coastlines continue to entice buyers with their unique charm. Our research confirms this sentiment, showing that waterfront homes in the UK command a significant premium of 48% over their inland counterparts.”

Global Waterfront Premium Matches UK Trend

It seems our love affair with waterfront living is shared across the globe, with the average global premium for waterfront properties standing at 49% – almost identical to the UK figure.

Miami tops the global rankings with a staggering 93% premium, followed by Lake Como in Italy. The Bahamas, Auckland, and Barbados also feature in the top five.

And just like in the UK, lakes (64%) and estuaries (62%) command the highest premiums worldwide.

So, there you have it – if you’re lucky enough to live by the water, you’re sitting on a prime piece of real estate. But if you’re thinking of making the move to a waterfront property, be prepared to pay a hefty premium for the privilege.