New research shows the average premium for waterfront homes in the UK standing at 48%.

Knight Frank says that premiums broken down by property type and the percentage uplift:

•    Estuary 75%
•    Lakeside/Loch 71%
•    Coastal 66%
•    Harbour 42%
•    Riverside 22%

Regional analysis reveals – perhaps unsurprisingly – that the South West (76%), South East (51%), and Scotland (42%) boast the most substantial uplifts for waterside homes.

The agency says that declining stock levels have helped stabilise prices, with waterfront property listings decreasing by 4% in the year to February 2024.

Recording a modest 2.7% dip in average prices, waterfront homes have showcased greater resilience compared to the broader UK property market, which experienced a 5.1% decline, highlighting their enduring appeal, insists Knight Frank.

Demand for waterfront properties is also resilient; viewings increased 25% in the year to early 2024 compared to the five-year average, (excluding 2020, due to the pandemic), while offers accepted jumped 12%.

Hamish Humfrey, Head of Waterfront at the agency, comments: “Properties nestled along rivers, lakes and coastlines continue to entice buyers with their unique charm. Our research confirms this sentiment, showing that waterfront homes in the  UK command a significant premium of 48% over their inland counterparts.

“It speaks volumes about the intrinsic value and  appeal of living by the water’s edge. Despite market fluctuations over the past year, waterfront  properties have shown remarkable resilience, exhibiting greater price stability compared to the broader UK market.

“Notably, the South West and South East regions have seen heightened demand  and notable price increases.”

In 2024, the global waterfront premium for waterfront properties across 17 global luxury residential markets sits at 49%, closely mirroring the UK’s 48%.

Miami leads the ranking with a 93% premium, driven by high demand for luxury homes in areas like Miami Beach and Coral Gables, coupled with no state income taxes and limited prime beachfront availability.

This strong demand places the Americas at the top with a 77% uplift for waterfront homes.

Europe’s Lake Como ranks second globally. The top five also include the Bahamas (72%), Auckland (67%), and Barbados (65%). Globally, lakes (64%) and estuaries (62%) see the highest premiums, not unlike the UK’s preference for these properties.