Published: 27/10/2020Dataloft 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
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.
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.
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