• According to Jackson-Stops’ annual Waterside Review, average price paid for homes in waterside postcodes have risen by 23% in five years

• Whilst the average price paid showed a nominal increase from 2018 to 2019 of just £850, in 2021 to 2022, the waterside premium jumped to £32,760

• For the first time in five years, the waterside market is outpacing the wider housing market, with prices growing by an average 10% annually by the end of 2022 compared to the UK average of 8%

• Some riverside locations are carrying a house price premium of 64%, with top locations including Cheshire, Berkshire and Northamptonshire

• 57% of waterside properties sold above guide price in 2022

Jackson-Stops’ latest research has found that the average price paid for properties within proximity to water across a five-year period has risen by 23%¹, exceeding the wider UK average. Evidenced in its new annual Waterside Review, the national estate agency has found that, for the first time in five years, the waterside market is outpacing the wider housing market when analysing HMRC’s price paid data, with prices growing by an average 10% by the end of 2022 compared to the UK average of 8%**. Interestingly, whilst the average price paid for a waterside home showed a nominal increase from 2018 to 2019 of just £850, in 2021 to 2022, this premium jumped to £32,760².

Nick Leeming, Chairman of Jackson-Stops, says, “It’s long been reported that our waterside homes - properties looking over rivers, lakes, canals and sea - are some of the UK’s most recession-proof property types. Their tranquillity combined with their scarcity tend to offer a winning combination for many buyers, often benefitting the most from house price booms, like the one we saw in 2021 during the race for space, for both green and blue landscapes.”

¹Based on Jackson-Stops’ data comparison of HMRC price paid per residential transactions of all UK postcodes in 2018, 2019, 2020, 2021 and 2022, against government data from the Environment Agency (DEFRA) listing postcodes located within 50 meters of bodies of water including rivers, canals, lakes, or sea.

²Based on Jackson-Stops’ data comparison of HMRC price paid, as above. The methodology of this stat is as follows: the difference between the average price paid for a waterside home in 2021 (£312,328.05) vs 2022 (£345,088.12).
 

Jackson-Stops’ Waterside Review found that it was locations inland overlooking rivers and streams that topped the charts for consistently high waterside premiums in comparison to seaside settings. The best performers were waterside properties in Wrexham, close to the River Clywedog, carrying a premium of 64% when compared to non-waterside postcodes in the area. In Wokingham, Berkshire, along the River Thames, this premium was 37%, whilst in Cheshire, along the River Dee, it was 32%.

Compared to coastal locations, it was only the traditional seaside hotspots of Brighton & Hove (78%) and Bournemouth & Poole (36%) that conducted premiums on parr with riverside location inland.

Nick explains, “Certainly those homes that come with moorings and direct water frontage, are absolutely gold dust. Planning permission can be hard fought to build on these already populated locations due to their proximity to water - we often see developers get there first. What this means is those homes that offer this unique waterside lifestyle often operate in their own sub-market, far exceeding anything similar inland. On some occasions, they can sell for a 20% to 30% premium when the market conditions are right.”

According to Jackson-Stops’ own national branch data, which spans across the UK, 57%³ of waterside properties listed sold above guide price in 2022, which is an increase on the 52% in 2021, and significantly higher than the 27% in 2020. This feeds into the wider trend of waterside sold prices steadily increasing to an average 4% above asking prices in 2022, moving from the -1% seen five years previously, highlighting just how the pull of waterside living is yet to relinquish.

³Based on Jackson-Stops’ own UK branch data collected via REAPIT, analysing listed house price data of waterside homes only – those near river, lake or sea – against their exchanged price, year-on-year.

Crispin Harris, Director of Jackson-Stops in Cheshire, says, “The River Dee acts as a magnet for buyers, here. Families are drawn to the idyls of a life by water, whilst investors are tempted by the higher capital returns over time that a waterside home can harness compared to others. As the demand for waterfront properties increases, their value may also increase, making them a potentially lucrative investment. However, it's important to note that not all waterfront properties are created equal, and factors such as the size of the body of water, proximity to amenities, and overall condition of the property can also impact its value.”

He continues, “A growing trend in our market is from downsizers looking for a tranquil riverside view. Apartments and houses in elevated positions do well, especially those with large terraces for wistful summer afternoons hearing the gentle rhythms of the water. There is a growing body of research that suggests that living near water can have positive effects on both physical and mental wellness. More blue space can allow for some fun hobbies too - I’ve never seen so many people take up paddle boarding as I did last summer.”

Read the full report here.