South-facing property premiums are a myth
Properties with a south-facing garden, traditionally considered to carry a large premium, only cost a tiny 0.37% more than those with a less sunny aspect, according to new research from Direct Line Home Insurance.
So while estate agents may trumpet the benefits of a south-facing garden, it isn’t actually reflected in the price.
In contrast, high level views add a whopping 31% to property prices in London, as buyers are willing to pay extra for a view of the capital. A river view adds 9% to the value compared to other identical properties in a new development.
In one North London development, a three bedroom property with a river view has an asking price of £850,000 – 42% more than an identically proportioned and designed property elsewhere in the development that costs £600,000.
Katie Lomas, head of Direct Line Home Insurance, said: “The research highlights that south-facing premiums may well be a myth, but a room with a view comes with a hefty price tag. People are prepared to pay thousands more for the same amenities and layout because a property is located higher in a building, has a more scenic vista, or because it overlooks water.
“However, while picturesque river views are much admired it is worth noting properties built near water may cost more to insure because of increased flood risk. Purchasers should check the likely cost of insurance before they commit to buy.”