The latest research by London lettings and estate agent, Benham and Reeves, reveals that homebuyers who want a room with a view in London are facing house price premium of up to 140%.
Benham and Reeves has analysed asking prices for London properties listed with the allure of a ‘good view’ to see how they compare to the wider price of purchasing a property across the capital. A ‘good view’ might entail cityscapes, riversides or, in more suburban boroughs, green space.
The data shows that a property listed with a good view in London costs, on average, just over £1 million. This is 93% more than the overall average London house price of £525,629.
The largest premium for a room with a view is found in the borough of Lambeth. Here, the average asking price is £545,537, while the average for a good view is a breathtaking 137% more at £1.3 million.
Merton, in the city’s South West, carries an average price of £564,071, but buyers who want a good view can expect to pay a premium of 120% to secure such a property.
London’s room with a view house price premium good also tops 100% in Kensington & Chelsea (109%), Lewisham (108%), and Enfield (105%).
For buyers already trying to navigate a pricey London market and unusually expensive mortgages, such extraordinary premiums are likely out of reach. But there are a number of boroughs where a good view is much more affordable.
In the North West London borough of Harrow, the average home costs £512,866 while the average for a good view is £602,080; a premium of just 17%.
In Brent, a good view will cost an additional 25%, and in Ealing it’s an additional 26%.
The good view premium also comes in under 50% in Waltham Forest (31%), Barnet (35%), Bromley (38%), and Newham (48%).
Director of Benham and Reeves, Marc von Grundherr said, “The best views that London has to offer are going to cost you a lot of money. It’s a case of supply and demand. In a largely flat city which is densely populated with buildings, truly majestic views are relatively few and far between.
That’s why any homeowners who are sitting on a great view can always be confident that their property will achieve a hefty price premium even in a cooling housing market. A room with a view is akin to being within two minutes walk of a tube station – completely immune to wider market conditions and always in high demand.”