London properties with balconies can command up to a 20% premium over similar properties without outside space, according to latest research by Chesterton Humberts, with many buyers putting more value on some form of outside space than either an extra bedroom or a further 150 sq ft of internal floor space.
Research by the National Association of Estate Agents (NAEA) recently reported that a well landscaped garden could increase the value of a property by up to 6%, but Chesterton Humberts’s research revealed that this figure was much higher in London where properties with balconies cost up to 20% more than comparable properties without outside space, regardless of their size or location.
Chesterton Humberts have numerous examples of this trend across London: Its Little Venice office saw a difference in value of £145,000 for two nearly identical properties; the property with the higher value had a balcony while the other had an additional bedroom but no outdoor space. In leafy southwest London, Chesterton Humberts’ Barnes office have for sale a property with a south facing balcony for nearly 20% more than a similar property with almost 150 sq ft more indoor space but no outdoor area. Fulham properties shared a similar increase – a four bedroom terraced property with a large decking garden was on the market 5.6% higher than a similar property on the same street but with smaller outdoor space.
The aspect of gardens and balconies was also reported to be a significant factor in determining overall value of a property, with south and westerly facing outside spaces delivering premiums of up to 15%.
Nick Barnes, Head of Research for Chesterton Humberts said: “We all value outside space, but especially so during the summer months when we want to make the best of those rare sunny days but don’t necessarily want to share them with the thousands of people that flock to the capital’s popular green spaces.
“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 as it will almost certainly add a significant premium when it comes to sell.”
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