Can a Roof Terrace Add Value to a Property?
It is estimated that having access to a roof terrace in a London property can increase the value of this property by as much as 12%. Both owners and potential buyers are now thinking more about the access they have to any outdoor space.
It is quite common for homes in central London to not have a private garden. This has led to increased demand for balconies, roof terraces and communal gardens. A balcony or terrace will add at least 12% to the value in most places in London, and this can rise to 25% in sought after neighbourhoods such as Chelsea.
If the property has access to a communal garden, then this can raise the value by 11%. This rises again to 20% in neighbourhoods such as Holland Park and Little Venice.
David Pittman is the Associate Director and Sales Manager for Marsh & Parsons, an estate agent in Holland Park. He has made the following comments about the impact of outdoor space on house prices in London. ‘As the mercury rises, Londoners don’t want to be cooped up inside and want to be able to feel the wind in their hair. For the right buyer, a balcony or more particularly a roof terrace, will add significant value to a property in the area. Some of the more petite family houses have roof terraces in place of a garden and in these cases, value will be increased by approximately 10% more than the same property without any outside space. Having direct access to one of W11’s wonderfully desirable communal gardens can increase a property’s value by 20% or significantly more.’
Less than a third of properties on the market in London have outdoor space such as a roof terrace or communal gardens. This means there is a lot of demand for these properties when they do become available. They do not tend to stay on the market for long and the increased demand often means they fetch a higher price than similar properties with no outdoor space.
The average price for a square foot of outdoor space in London is £897. In areas such as South Kensington, this can rise to as much as £1925. If you have sizeable outdoor space, then this can make a real difference to the price of your property.
Peter Rollings, CEO of Marsh & Parsons explains why outdoor space is so important to many of their customers. ‘As a nation we love our gardens, and the Chelsea Flower Show has green-fingered enthusiasts across the country looking on in envy. But with outdoor space at a premium in the capital, not all properties have their own gardens, so roof terraces, balconies and communal green areas can be just as important to buyers looking to unwind in the open air. Vendors have long been aware of how much value traditional home improvements such as a new kitchen or bathroom can add to a property and this research may just persuade them to covert flat roofs or balconies into habitable outdoor oases.’
Statistics and quotes come from: Property Reporter