However, a closer look at the data reveals that the premium varies by location. A waterfront position in South West England, for example, offers the most added value when compared to a similar property inland, with prices 75% higher.
Prime riverside homes in London add 55%, waterfront properties in the South East 44% and in East Anglia the premium is 41%.
But the report points out that it is not just the location that adds value to a waterfront property. Amenities are also a crucial factor for many buyers and having direct access to water is something many people are prepared to pay a premium for.
Private slipways are considered the most valuable feature, pushing up the waterfront premium by an average of 115%. Properties with a private mooring or pontoon see their waterfront premium rise by 104% and 100% respectively, while jetties and private beach access add 89% and 85%.
In terms of location types, homes situated on estuaries command the largest uplift of about 85% compared to a similar property inland. Prime harbour side properties enjoy an uplift of 83% due to their rarity and coastal properties are worth 56% more.
Heading away from the sea, lakeside homes are 37% pricier than their waterless equivalent, and being situated next to a river adds, on average, 57% to the value of a prime residential property.
Home to the longest coastline in the UK, the South West has long been a popular location for waterfront property buyers. Its popularity is such that buyers are willing to pay a 75% premium for a waterfront home here, the most added value of any region in the UK.
In this region the stretch of coast starting just after Mevagissy and ending at Falmouth, excluding Truro, is where the largest cluster of prime waterfront property in the South West is currently on sale.
There are also a number of additional peaks along the coast in prime locations in and around Dartmouth, Salcombe and along the North Cornwall coast in Rock. Prime waterfront properties available for sale in these hot spot locations tend to be situated on stretches of river, or in harbours and estuaries where the biggest value uplifts for waterfront property can be found.
Demand for waterfront properties is global. Knight Frank web search data shows that there was a 6% increase in the number of individuals from outside of the UK looking at waterfront properties last year, led by potential buyers in the US, Germany and Australia.
The analysis also shows that waterfront property buyers are getting younger. Over the last year, more than 60% of Knight Frank buyers were in their 40s or younger. Last year, the same percentage was aged 50 or over.
