Waterside homes are cheaper than they have been in years — but it won't last

One stark fact floats to the surface of pages of research: waterside house prices have dropped for the first time in five years. In 2023, the average waterside house price premium was a mere 2%, down from 7% the year before; previously, there had been a steady 17% increase since 2018.

In real-money talk, that 2% average premium is equivalent to an extra £10,000 on the prices of non-waterside homes in the same area, fairly incredible considering the 210% premium in Lancashire’s Ribble Valley, the most expensive place to buy a riverside home in 2023. Brighton & Hove is the dearest place for a seaside home, 96% more than the area’s inland average.

Data: Jackson-Stops

However, no one seems to expect the downward trend to continue. A waterside home is still the ‘ultimate luxury,’ explains Nick Leeming, chairman of Jackson-Stops, and desire for them will be ‘fuelled further by an increase in downsizers and remote workers’.

A glance at the figures reveals some top spots in terms of investment. These include Chichester in West Sussex and north Norfolk, both with a mere 18% waterside premium.

‘We are now far beyond the wild highs in price premiums seen after lockdown, in a time where stability and supply are key drivers… levelling out the playing field,’ continues Mr Leeming.

‘The cyclical nature of the market means that it is likely that a past drop in waterside prices won’t last for long. Their scarcity and kudos are such that, by their very location, they will always remain desirable. But what this rebalancing of prices in 2023 does represent is a rare opportunity for buyers to act now and purchase at a good price.’

The Jackson-Stops annual waterside review analyses price paid data for property transactions in postcodes within 50 metres of water, both rivers and sea. Unsurprisingly, the list of top 10 most expensive coastal sites is dominated by southern counties, such as Cornwall, Dorset and West Sussex, with a noted rise in interest in Norfolk, where ‘demand for property continues to defy economic gravity,’ says David Lambert, director of Jackson-Stops Burnham Market.

‘There are two distinct buyer types for us; the second-home shoppers, who want a beachside bolthole to spend the weekends, and the countryside-living converts, who left the City during lockdown and aren’t looking back, thanks to flexible working,’ he continues, addin that Norfolk is ‘a honeypot for young families’ with prestigious schools such as Gresham’s and Beeston Hall.

Mr Lambert has noticed a number of downsizers coming to Norfolk from the Midlands and believes the county’s size is a huge draw, with its ‘big skies, expansive beaches and abundant natural capital. Bringing well-presented homes to the market is especially important right now and Norfolk’s charming coastline and brick-and-flint homes are in high demand both locally and nationally’.

However, when it comes to life on the river and messing about in boats, it’s the North of England that takes the crown, with Yorkshire, Leicestershire and Manchester among the top 10, as well as Lancashire. No wonder, believes Karl Ormerod, director of Jackson-Stops Lancashire and the Sefton Coast. ‘The North of England is a hidden gem of waterside beauty spots, protected by moorlands, woodlands and dramatic valleys, combining to produce spectacular views and a fantastic quality of life. Houses and estates in Lancashire that are close to water or that have moorings and direct water frontage are often larger in size due to the vast amounts of land here and thus will command a premium.’

‘It’s not only the Ribble valley,’ continues Mr Ormerod. ‘The Sefton Coast is attracting swathes of downsizers and families from across the country looking for a new rhythm to life. Cleaner air, quieter environments, opportunities for outdoor adventure and a closer connection to Nature.’

These days, people want privacy, he stresses, and that’s why they look to the North. That house prices are pretty reasonable, the trains fast and slightly unsung beauty spots, such as Formby Beach and the Pennines, are on the doorstep, makes it all the more appealing.

Credit: Strutt and Parker

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