Price premiums for waterside homes lowest in five years - agency analysis

Price premiums on waterside properties are at their lowest in five years, according to Jackson-Stops’ annual Waterside Review. 

While waterside homes in 2023 commanded a 2% price premium on average – equivalent to £10,000 more than non-waterside homes in the same area – this is a fall on the 7% premium seen in 2022.

In its annual analysis of price paid data for property transactions in postcodes within 50 meters of water including rivers and sea, the agency has found that for the first time, waterside house prices dropped by 6% in 2023.

“We are now far beyond the wild highs in price premiums seen after lockdown, in a time where stability and supply are key drivers in the market moving forwards, levelling out the playing field for all” according to Jackson-Stops chairman Nick Leeming.

Even so, the agency says there has been a 17% average house price rise for waterside postcodes since 2018.

And flats show a higher waterside price premium than detached, semi or terraced housing, with a 10% uplift in 2023.

Leeming adds: “Interestingly, our data has highlighted that flats by the coast, on rivers, canals and estuary locations command the highest premiums. This can be down to a number of reasons, from the highly prized elevated views to the security of a larger development against flood risk. 

“Planning permission can be hard fought to build on these already populated locations due to their proximity to water - we often see developers get there first. 

“What this means is those homes that offer this unique waterside lifestyle often operate in their own sub-market, far exceeding anything similar inland.”