London homebuyers faced with 140% price premium for a room with a view

The latest research by London lettings and estate agent, Benham and Reeves, reveals that homebuyers who want a room with a view in London are facing house price premium of up to 140%.

Benham and Reeves has analysed asking prices for London properties listed with the allure of a 'good view' to see how they compare to the wider price of purchasing a property across the capital. A 'good view' might entail cityscapes, riversides or, in more suburban boroughs, green space. 

The data shows that a property listed with a good view in London costs, on average, just over £1 million. This is 93% more than the overall average London house price of £525,629. 

The largest premium for a room with a view is found in the borough of Lambeth. Here, the average asking price is £545,537, while the average for a good view is a breathtaking 137% more at £1.3 million. 

Merton, in the city's South West, carries an average price of £564,071, but buyers who want a good view can expect to pay a premium of 120% to secure such a property.

London's room with a view house price premium good also tops 100% in Kensington & Chelsea (109%), Lewisham (108%), and Enfield (105%). 

For buyers already trying to navigate a pricey London market and unusually expensive mortgages, such extraordinary premiums are likely out of reach. But there are a number of boroughs where a good view is much more affordable. 

In the North West London borough of Harrow, the average home costs £512,866 while the average for a good view is £602,080; a premium of just 17%. 

In Brent, a good view will cost an additional 25%, and in Ealing it's an additional 26%. 

The good view premium also comes in under 50% in Waltham Forest (31%), Barnet (35%), Bromley (38%), and Newham (48%). 

Director of Benham and Reeves, Marc von Grundherr, commented:

"The best views that London has to offer are going to cost you a lot of money. It's a case of supply and demand. In a largely flat city which is densely populated with buildings, truly majestic views are relatively few and far between.

That's why any homeowners who are sitting on a great view can always be confident that their property will achieve a hefty price premium even in a cooling housing market. A room with a view is akin to being within two minutes walk of a tube station - completely immune to wider market conditions and always in high demand."