Londoners faced with 140% 'good view' premium

Homebuyers are facing house price premiums of up to 140% for properties in the capital that have a nice view, according to findings from Benham and Reeves.

Related topics:  Finance,  Property,  London,  premium
Property | Reporter
9th August 2023
London 7
"In a largely flat city which is densely populated with buildings, truly majestic views are relatively few and far between"

The latest research by the London lettings and estate agent looked at asking prices for properties in the capital listed with the allure of a ‘good view’ to see how they compare to the wider price of purchasing 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, commented: “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 minute's walk of a tube station - completely immune to wider market conditions and always in high demand.”

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