Will you receive higher returns by investing in waterfront properties?

March 12, 2025

There are many aspects to designing the perfect investment strategy for you, but at the end of the day, the most important part will be choosing the location of the property itself.

Choose in the right area – for example, close to a regeneration masterplan – and you can set yourself up for strong long-term capital appreciation and rental returns. Get it wrong, and you might end up with a property in a place with no renters and a declining market.

For many investors, UK buy-to-let property for sale near the waterfront is a naturally attractive choice – but is it the right choice, and does the value of waterfront properties go up faster than average?

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Why invest in waterfront property?

Waterfront property is often very attractive to renters. It offers beautiful surroundings and a more relaxing, tranquil residential environment than most city centre properties.

Furthermore, new waterfront homes are often part of new regeneration areas, offering a range of lifestyle benefits for residents:

New and improved transport links
Better shops, bars and restaurants
More green spaces
New cultural sights
Enhanced views from their homes
Improved health and wellbeing

For investors looking to buy UK property, that means choosing a new waterfront scheme can often help you secure long-term, high-paying renters – especially in the best UK property investment hotspots.

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Waterfront property prices go up faster than average

Research from Knight Frank shows that waterfront properties in the UK also benefit from higher capital appreciation when compared to other properties.

In total, a home close to water is worth 48% more than a non-waterfront property according to the agency. That pattern is replicated around the world, and especially in the UK.

Looking at the different types of waterfront property offers even more detail for investors researching the best investment strategy:

Estuary – 75%
Lakeside/Lochside – 71%
Coastal – 66%
Harbour – 42%
Riverside – 22%

Hamish Humfrey, Head of Waterfront at Knight Frank, said: “Properties nestled along rivers, lakes and coastlines continue to entice buyers with their unique charm. Our research confirms this sentiment, showing that waterfront homes in the UK command a significant premium of 48% over their inland counterparts.

It speaks volumes about the intrinsic value and appeal of living by the water’s edge. Despite market fluctuations over the past year, waterfront properties have shown remarkable resilience, exhibiting greater price stability compared to the broader UK market.”

Data from Savills offers further evidence that investing in property either on or near the waterfront is a good idea.

Compared to the pre-pandemic average, waterfront properties have gone up in value by an average of 11%, compared to 10% for non-waterfront properties.

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Where to invest in UK property to maximise capital appreciation?

All of that makes waterfront property a great option for any investor, whether they are based in the UK or abroad. Our portfolio of available investments includes a range of waterfront developments to appeal to investors of all types – in busy modern city centres, and in quiet and popular coastal destinations.

Hordan House is a great example of a development close to the waterfront that is a premium opportunity for investors.

Located between Wirral Waters and the Birkenhead 30-year masterplan regeneration areas, this development puts residents within minutes of the River Mersey, offering views over the waterfront and the city of Liverpool opposite.

The North West is the UK’s best property region, and Hordan House is one of the most attractive investment options in the area.

Prices start at just £130,000 and residents can also enjoy great transport links to Liverpool via the nearby rail station.

It will be attractive to renters, and will also generate enhanced capital appreciation due to its location.

If you would like to know more about our waterfront investment opportunities – get in touch with the team today to learn more, get on the waiting list and get the first chance to invest in our waterfront buy to let opportunities.

Will you receive higher returns by investing in waterfront properties?

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