Prime waterfront properties across Great Britain command an 80% price premium over comparable inland homes, according to Knight Frank’s prime waterfront index released Thursday.
Price premiums vary across the nation, but buyers of prime waterfront homes in the South West of England—home to some of Great Britain’s most popular coastal towns—can expect to pay the highest markups, up to 105%. Investors of big-ticket homes in Wales, meanwhile, will be faced with the lowest premiums—just 25%, the brokerage said.
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Higher prices don’t deter buyers, according to Oliver Knight, research associate at Knight Frank.
"The number of new prospective buyers looking to purchase a waterfront property increased by 24% in 2017 compared to the previous year, according to our figures," Mr. Knight said. Sales volumes were up by 8% in the same time frame, he added.
Even 2016’s introduction of a higher rate of stamp duty for second-home buyers—typically an important part of the waterfront market—hasn’t diminished the popularity for waterfront property, according to the report.
"The figures are underpinned by the fact that the most desirable coastal towns and cities across the U.K. hold a global appeal, something that can help shelter such markets from any localized uncertainty," Mr. Knight said.
"Our web-search data shows that individuals from all over the world searched for prime waterfront property in the U.K. last year, led by potential buyers in the United States, Canada, Australia and Germany," he said.
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It’s not just the location of a property that sways price premiums, but also the type of water it’s near.
Homes found on estuaries logged the largest price boosts, up to 108% compared to a comparable property inland, said Knight Frank. Prime harborside properties ranked second, seeing premiums of up to 107% thanks to their rarity.
Prime lakeside homes command the lowest premiums, with prices 50% higher than their waterless equivalents.