Well-designed new homes in London command an 11 per cent price premium, according to a new study by Dataloft and HomeViews. The results chime with the Government’s recent proposals to redefine planning laws to be more design-led.
The study showed that the price per square foot of new developments rated highest for design was on average 11 per cent higher than for comparable new build sales in the same postcodes.
Dataloft took design ratings from the 15 London developments rated highest for design by owners on HomeViews (see list below). The achieved price per square foot was calculated for those 15 new build schemes. This was then compared to the achieved price per square foot of other new build sales in the same postcode districts as the 15 schemes, and in the same time frame.
London developments rated highest for design
- London Square (SW15)
- Hoxton Press (N1)
- Royal Wharf (E16)
- Park Heights (SW9)
- Highbury Square (N5)
- Deptford Foundry (SE14)
- Regents Place (BR1)
- Royal Arsenal Riverside (SE18)
- The Schoolyard (SW18)
- Brentford Lock West (TW8)
- The Waterman, Greenwich Peninsula (SE10)
- Putney Rise (SW15)
- East City Point (E16)
- St Marks Square (BR2)
- Bagel Factory (E9)
Analysing by price per square foot rather than average values was important for a clearer view of any design premium on new build homes. This is because, for well-designed, high quality properties, space may be used in a different way.
For example, a high-end one-bedroom apartment might be the size of a typical two-bedroom apartment in the mainstream market. Per square foot analysis allowed for a true like-by-like comparison and provided much greater insight.
Study parameters
There are of course other variables which need to be considered as having an impact on sale price, even after allowing for location, date and size. These include the reputation of the developer, leasehold terms, aspect and so on.
However, as much as was possible, the study controlled variables by using price per square foot as the comparator, comparing developments in London and only including new build apartments. This made it possible to isolate, as far as possible, the impact of good design on the value of those new homes.
Importance of design
In a separate survey of 5,000 tenants carried out in 2019 and analysed by Dataloft on behalf of The Property Academy, 91 per cent of those surveyed said that design was either ‘very important’ or ‘important’ to them when it came to their homes.
Another study completed in 2018 by Dataloft for estate agency The Modern House found that design-led homes commanded an average price premium of 12%. This figure was higher for properties in the £1m+ bracket, where a price premium of up to 19% was found.
Resident quotes on design
Discover the 10 Manchester property developers rated highest for design, or gain expert insights on successful BTR design from Helen Berresford – head of the award-winning interior design group ID:SR.
HomeViews provides verified resident reviews of the UK’s housing developments. We’re working with developers, landlords and the Government to recognise high performers and help to improve standards in the built environment.
Dataloft is a tech-driven research consultancy specialising in residential property and delivering in-depth analysis of local, national and international housing markets. www.dataloft.co.uk
