Forget what you’ve been told because new research has laid to rest the myth that south-facing gardens add a premium to property values.
Most homeowners believe south facing gardens to be a well sought after asset and they have become desirable because they are thought to be warmer and brighter. However, it appears this isn’t reflected in the asking price of a property.
A new study, commissioned by Direct Line Home Insurance, has revealed that a south facing garden doesn’t add as much value as previously thought despite estate agents and property experts convincing us otherwise. According to the latest results, Direct Line concluded that gardens which catch the sun for most of the day only add a measly 0.37% to a property’s value, in comparison to a home that has a north facing garden. With the UK average house price now at around £220,000, this means you will only pay about £808 extra for a suntrap garden.
However, for those of you with a river view, you are in luck. River views attract around a 9% premium when compared to identical properties located on the same development without such views. On that basis, buyers that are searching for a home looking out over a stretch of water, could be set back an extra £19,665 on top of the UK average house price.
A three bedroom property with a river view in one North London development, has an asking price of £850,000. This is 42% more than an identical property on the other side of the development, costing just £600,000.
The research has also concluded that in many cities, the higher you live in a new development, the higher the premium will be. One developer informed researchers they added a £15,000 premium to the asking price for every floor.
Inside a development just five minutes from Angel tube station, the apartment on the 14th floor is on the market for £850,000. This is a staggering 31% more expensive than an identical property on the third floor. Talk about ‘sky high’ prices.
This research therefore highlights the fact that although the premiums for south facing gardens are a myth, a room with a view will always carry a hefty price tag. Today people are prepared to pay thousands, if not hundreds of thousands more, for a property that is either located higher within the building, has a slightly more scenic view, or because it looks out over a stretch of water.