A property with a balcony is a top investment opportunity in London for landlords looking to maximise premiums. Research from Chesterton Humberts revealed in the capital a balconied home can command up to 20 per cent more than similar properties without outside space. So popular is personal access to the outside among Londoners that it is valued much more than an extra bedroom or an additional 150 square feet of internal floor space.
Chesterton Humberts latest research is yet more evidence that outside space is the key for landlords in the capital. Research from Marsh & Parsons recently also showed buyers will pay at least a 20 per cent premium for outdoor space, while the National Association of Estate Agents (NAEA) found a well landscaped garden could increase the value of a property by up to six per cent across the country.
Nick Barnes, head of research for Chesterton Humberts, said: "Research from across our extensive office network has revealed that properties with well maintained outside space can command significant premiums across the country, with the largest premiums found in London. This is relatively unsurprising as private gardens and balconies are increasingly difficult to come by. Our advice to those looking for a property this summer, and especially those looking to invest in London property, would be to consider outside space perhaps over an additional bedroom or office."
Marsh & Parsons also found proximity to parks can increase premiums, while a large garden will send values soaring. In Kensington, a flat with a large garden that also overlooks Kensington Gardens goes on the market for around GBP 3,500,000. What's more, a property in the same neighbourhood with a private patio and access to roof terrace had a six per cent yield.
The draw of outdoor space is even greater during the summer months, as Londoners look to get outside. Marsh & Parsons claim properties without gardens or balconies could struggle to sell during the season, with outdoor space making the difference between a property that has the wow factor and one that doesn't.
- Tuesday 10 September 2013