Homebuyers who want a good view of London face a house price premium of up to 140%, according to research by London lettings and estate agent, Benham and Reeves.
Benham and Reeves analysed asking prices for London properties listed with a ‘good view’ to see how they compared with the overall price of purchasing a property in the capital.
A ‘good view’ might entail cityscapes, riversides, or green space.
A property listed with a good view in London cost, on average, just over £1m, 93% more than the overall average London house price of £525,629.
The largest premium for a room with a view was in the borough of Lambeth, where the average asking price was £545,537, while the average for a good view was 137% more at £1.3m.
Merton had an average price of £564,071, but buyers who wanted a good view could expect to pay a premium of 120% to secure a property with a good view.
London’s room with a view house price premium was also high in in Kensington & Chelsea (109%), Lewisham (108%), and Enfield (105%).
In the North West borough of Harrow, the average home cost £512,866, while the average for a good view was £602,080 – a premium of just 17%.
In Brent, a good view cost an additional 25%, and in Ealing it cost an additional 26%.
The good view premium also came in under 50% in Waltham Forest (31%), Barnet (35%), Bromley (38%), and Newham (48%).
Marc von Grundherr, director at Benham and Reeves, 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.”
