Dataloft collaborated with HomeViews on this study, finding that well-designed new homes in London command an 11% price premium. 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% 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 (the review site for residential developments in the UK). 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. 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.
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.
This article can also be found on the Homeview site, link via image.
This article also ran on the Prime Resi website. A pdf of this is available here.
HomeViews is an independent review platform for residential developments in the UK. Dubbed the 'TripAdvisor for property,' HomeViews allows prospective buyers and tenants to make an informed decision on where to live based on unique insights from verified resident reviews. Launched in February 2019 and with almost 10,000 reviews to date, HomeViews provides a powerful research and marketing tool for the residential property sector while helping to raise standards in the built environment. www.homeviews.com