How Much Does a Sea View Really Add to Property Value?

15 July, 2024

In property, location is really critical. Among the several elements affecting home value, a sea view is clearly a highly appealing asset. Still, how much does a sea view truly add to the value of a house? Potential purchasers, as well as present homeowners trying to maximise their asset will wonder. Supported by current statistics and professional opinions, we explore the effect of a sea view on property value.

The Appeal of a Sea View

Well, there is no doubt that a sea view has unrivalled aesthetic appeal. The serene sight of the ocean comes with the soothing sound of waves; more than anything, the refreshing fresh air all contributes to a higher quality of life. As a result, homes with a sea view are frequently highly sought after.

But How Much?

To comprehend the financial impact, you should look at the data. According to studies, houses with a sea view can attract a significantly higher price than those without. In fact, even a decade ago, BBC News reported that properties in the south-west of England had seen the greatest increase in premium; the premium of a water view property was supposed to reach up to 66%.

Factors Influences Value Addition of a Sea View Property

When we talk about value added, there are certain points to clarify. Not all properties by the water add value to the same degree. This premium fluctuates due to numerous aspects. Let’s discuss them.

Extent of the View

Unsurprisingly, the broader the sea view, the higher the cost. Properties with panoramic views of the sea, particularly from numerous rooms, are highly sought after. In contrast, a partial or blocked view may not considerably increase the property's value.

Proximity to the Sea

Proximity is also very important. Properties located immediately on the seafront typically attract the highest cost. Beachfront residences in desirable regions like Cornwall or the Isle of Wight, for example, frequently see significant price hikes. Properties a few streets away from the coast may also benefit, albeit to a lesser amount.

Location and Demand

The overall appeal of the location influences how much the sea view increases the value of a house. The premium for a sea view might be significantly higher in highly desirable regions such as Brighton or Bournemouth due to increasing demand. In less desirable regions, the premium may be lower.

Benefits in Lifestyle and Economic Terms

A sea view improves house value as well as lifestyle and financial aspects. For example, properties with a sea view are typically easier to rent out, giving owners a more consistent and often higher revenue source. Coastal homes especially appeal to holidaymakers, which drives increased occupancy rates and rental yields, especially in this age of AirBnB. Moreover, living near the sea has been connected to a better mental and psychological state. According to studies from the University of Exeter, seaside living can lower stress and encourage physical activity, which makes sea-view homes especially more desirable.

Market Developments and Future Prospects

Market trends point to a rising value for sea-view homes. As remote working becomes ever more normal, people and families are looking for homes that provide comfort as well as beautiful surroundings. Recent Rightmove research indicates that properties with a sea view in the UK fetch a significant price premium. Reflecting a 30% premium, the average asking price for properties with a sea view is £368,278, while that for those without is £282,218.

In all areas, properties with sea views demand a considerable premium.

●      From 2019 to 2020, sea view house price premiums have risen by a whopping £19,000.

●      At 42%, the South-West shows the greatest premium, with a price difference of £123,381.

●      By contrast, with a price difference of £27,040, Yorkshire and The Humber have the lowest premium at 17%.

●      For sea view homes in Wales, homeowners should budget a 27% premium.

●      Across Great Britain, homes with sea views typically have a 31% higher asking price than those without a view.

●      Reflecting their great popularity, Sea view properties in Sandbanks, Dorset have some of the highest premiums.

Seaview houses are also a great advantage for both homeowners and investors. Their demand usually translates into faster sales and better rental yields. People are now especially driven by the trend towards remote working. In a search for a higher quality of life, the growing interest in seaside living has further enhanced the appeal of these homes.

Looking ahead, sea view homes' value is predicted to keep growing. Although they have some challenges, climate change and rising sea levels will worry some. Once sustainable development and coastal preservation strategies help to solve these issues, the appeal and value of sea view homes should probably stay strong.

Tom Cranenburgh of Get An Offer Estate Agency says “With premiums between 10% and 30%, a sea view may greatly increase the value of a property. Key aspects of this premium are the degree of the view, proximity to the sea, and desirability of the site. Sea-view homes are widely sought after because of their lifestyle benefits above only financial ones. In the world of property, a sea view is a valuable feature. I’ve always lived on the coast and can’t imagine not being near to the seaside!”