Good design brings 11% price premium for new homes

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

1. London Square (SW15)
2. Hoxton Press (N1)
3. Royal Wharf (E16)
4. Park Heights (SW9)
5. Highbury Square (N5)
6. Deptford Foundry (SE14)
7. Regents Place (BR1)
8. Royal Arsenal Riverside (SE18)
9. The Schoolyard (SW18)
10. Brentford Lock West (TW8)
11. The Waterman, Greenwich Peninsula (SE10)
12. Putney Rise (SW15)
13. East City Point (E16)
14. St Marks Square (BR2)
15. 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

Deptford Foundry, SE14

Anthology

4.35 (76 reviews) 4.35 (76 reviews)

Area guide to Deptford

“Fantastic development with great transport links and great sense of community. Artistic vibes, excellent attention to detail and great finish in the flats.” Owner – April 2020

“The build quality of the flat was above and beyond what i’d seen in dozens of viewings across London. Fitted appliances of a very high grade. No corners have been cut, which you’d be amazed how often you see that in flats priced upward of £430k. There have been snags on moving in, but these have been quickly resolved.” Adam (Owner) – Feb 2019

Read reviews and details of Deptford Foundry, SE14

The Waterman, Greenwich Peninsula, SE10

Greenwich Peninsula

4.11 (22 reviews) 4.11 (22 reviews)

Area guide to Borough of Greenwich

“I liked the design of the building from the first sight – it is sleek and modern, great colours of the lobby and the lift area.” Irina (Owner), April 2020

Read reviews and details of The Waterman, Greenwich Peninsula, SE10

Royal Arsenal Riverside, SE18

Berkeley Homes, Berkeley Group

4.21 (381 reviews) 4.21 (381 reviews)

Area guide to Woolwich

“Spacious and ideal for couples who are working near the area. The balcony is nice and allows you to enjoy the weather. The build quality is very good and advanced which makes the property long lasting.” Owner – September 2019

“The development is well built with long lasting materials which is convenient for people living here for long periods of time. Although there were a few problems when we first moved into the development, Berkeley have been great in fixing any dents or other issues we’ve had in the development.” Owner – August 2019

Read reviews and details of Royal Arsenal Riverside, SE18

Hoxton Press, N1

Anthology

4.77 (23 reviews) 4.77 (23 reviews)

Area guide to Borough of Hackney

“Stunning but pared back building design which is followed through into communal areas and the thoughtful apartment designs. Nice residents who lend each other things and share recommendations in our social media groups. The balconies are large and usable, particularly in the summer months.” Sarah C (Owner) – May 2020

Read reviews and details of Hoxton Press, N1

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