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 (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.

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.

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.

ENDS

Editor's Notes

Top 15 developments rated highest for design by owners on HomeViews:

Owner quotes on design for the Top 15:

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.
Hoxton Press by Anthology, Sarah C (Owner), May 2020

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.
The Waterman Greenwich Peninsula, Irina (Owner), April 2020

Fantastic development with great transport links and great sense of community. Artistic vibes, excellent attention to detail and great finish in the flats.
Deptford Foundry by Anthology, (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.
Deptford Foundry by Anthology, Adam (Owner), Feb 2019 

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.
Royal Arsenal Riverside by Berkeley Homes. Anon (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.
Royal Arsenal Riverside by Berkeley Homes. Anon Owner, August 2019

Dataloft is a tech-driven research consultancy specialising in residential property and delivering in-depth analysis of local, national and international housing markets.  The Dataloft team brings together property analysts and data scientists with designers and writers to communicate insight on sale and rental markets for investors, developers, advisors and policy makers. Dataloft has a strong track record of working collaboratively to aggregate multiple and diverse data sources in order to improve understanding and transparency in the housing sector. www.dataloft.co.uk

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

Media Enquiries

Hannah Marsh – hannah@homeviews.com
Tel: +44 7979 470 623

Jan Moys – jan@homeviews.com
Tel: +44 7827 948 719

Sandra Jones – sandra@dataloft.co.uk

Tel +44 7714 124 681