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Residential buy-to-Let

Exploring the enduring appeal of waterfront property

Author: Gemma





Of the myriad types of real estate available to investors, mass-market buyers and renters, one of the most enduringly popular is waterfront property.

Homes that are located close to a body of water – whether it’s the sea, a river or a lake – can generally be relied on to attract strong demand from residents, which makes them an appealing target for investment.

The powerful appeal of waterfront property

One of the most attractive aspects of waterfront property is the lifestyle that is often associated with living close to water, particularly in terms of the sense of freedom and proximity to nature that rivers, lakes and the sea provide.

As Knight Frank pointed out in its Global Waterfront Report 2019, water has “long played an important role in the pattern of human settlement”.

“Today, however, owning a slice of a prime waterfront is less to do with its transport or agricultural value and far more to do with the iconic views and lifestyle it affords,” the company added.

The appeal of living close to water means buy-to-let investors who own riverfront or seaside housing can expect to benefit from steady tenant demand.

Furthermore, waterfront real estate has a strong track record for retaining and increasing its value, partly owing to its scarcity.

Knight Frank’s data showed that prices for prime waterfront homes are, on average, 40% higher than those for comparable housing inland. This underlines how much investors could have to gain, in terms of capital growth, from this particular segment of the property market.

Water views and city access

A waterfront location can prove particularly attractive if it also provides convenient access to a major city like London.

The prohibitively high cost of housing in the capital – where the average property price is upwards of £475,000, more than double that of other popular cities like Liverpool (£122,900) and Manchester (174,100), according to Hometrack – means water-view accommodation within the city simply won’t be affordable for most people.

In some commuter belt hotspots, however, buyers and renters can find the desirable living space they’re looking for at a much lower price, with the added benefit of convenient travel links to London.

A perfect example of this is the Chatham Waters development in Kent, which comprises a selection of one, two and three-bedroom apartments in a prime waterfront location.

Residents can reach London in just 36 minutes by train, while investors can receive net rental returns of up to 6% from November 2020.

Contact Experience Invest to learn more about this exciting new investment and other opportunities in the UK property market.

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