Riverside properties keep value

Flats facing onto the river Thames in London have lost just 4% of their value in the last two years.

According to London-based estate agent Cluttons, that compares to a drop of 13% in the average price of properties in the same areas that do not have a river view.

The agent claims that it is not just the appeal of the views themselves that have propped up values, but the proximity riverfront flats have to main tourist attractions and amenities such as the Millennium Bridge, The Globe Theatre and the South Bank.

James Hyman, partner for residential sales at Cluttons, said: “Waterfront living has become increasingly popular over the past five years with the migration of people back to London from the suburbs looking for this type of property. Some of the most innovative and aesthetically pleasing developments in recent years have been built on the river.”

Like many London property types, however, the value of riverfront apartments has been buoyed up by the simple equation of supply and demand.

Hyman added: “Limited supply has proved to be the key value driver in Central London over the past twelve months. There are few opportunities for further developments to be built along the Thames and the fact that a riverfront view cannot be easily matched within the Central London area has helped to protect values amongst these property types. Both landlords and owner-occupiers of these properties will continue to demand good returns on investment through rental yields, in addition to reaping the rewards when they come to sell.”

Separate research published yesterday also indicated that the UK property market in general is recovering steadily. Property search website Zoopla.co.uk reported that four out of five homeowners believe that property prices will increase in the first six months of the year, compared to just one in five at the beginning of 2009.

However, despite evidence that there are considerably more mortgage deals available now than last year, confidence in the mortgage market has not improved, with three quarters of buyers saying that they do not think that mortgage availability in the past three months has increased.