The Impact of Stunning Views on BTL Investments

Investing in buy-to-let (BTL) properties can be a highly rewarding venture, especially within the dynamic UK market. A key factor that significantly boosts the value and appeal of these investments is the quality of the view from the property. Whether it’s a panoramic sea view, lush green parkland, or an iconic cityscape, properties with desirable views can command a substantial premium. But how much value does a good view actually add to a BTL investment? Let’s explore the figures and understand the broader implications.

The Financial Impact of a Good View

Properties with stunning views are not just aesthetically pleasing; they are financially rewarding too. Research has consistently shown that properties with good views can fetch significantly higher prices than those without. For instance, homes with views of water, whether it’s a river, lake, or the sea, can be worth up to 48% more on average compared to similar properties without such views. This premium is driven by the scarcity and desirability of such properties, which often attract cash-rich buyers looking for exclusive features.

A study by GetAgent found that properties with a good view have a premium of 54% compared to the rest of the market. This means that not only do these properties sell for higher prices, but they also tend to appreciate in value faster, providing a double benefit to investors. This added value is often reflected in higher rental rates as well, as tenants are typically willing to pay a premium for the pleasure of a beautiful view from their home.

Popular Views and Their Value

Different types of views command different levels of premium. Here’s a breakdown of some of the most sought-after views and their associated value increases:

Waterfront Views: Properties by the water are highly coveted. In 2023, Knight Frank reported that lakeside properties commanded the highest premium at 71%, followed by coastal properties at 66%, and estuary properties at 64%. The calming effect and lifestyle appeal of living near water make these properties particularly attractive.
Green Spaces: Views of parks, gardens, or expansive green fields are also highly desirable. These views provide a refreshing escape from urban life, contributing to mental well-being and a sense of tranquillity. Properties with such views can command substantial premiums, reflecting their desirability among urban dwellers looking for a touch of nature.
Urban Landscapes: For those who prefer the hustle and bustle of city life, properties with views of iconic cityscapes can be very appealing. These views are particularly attractive to younger demographics and professionals who enjoy the vibrant energy of city living. Such properties often see high demand, translating into higher rental yields and appreciation rates.

Regional Variations in Value

The added value of a good view can vary significantly depending on the region. In the UK, there is a notable difference between the willingness to pay for a view in the North versus the South. According to a survey by Purplebricks, Southerners were willing to pay nearly 25% more than Northerners for their dream view.

Cities like London, Birmingham, and Manchester also show varying degrees of premium based on the type of view and the area’s overall desirability. For example, in Birmingham, properties with attractive views could command higher prices, especially in rapidly developing areas like Digbeth and the Jewellery Quarter. Meanwhile, in Manchester, areas like Salford Quays and Castlefield offer robust rental yields due to their picturesque views combined with urban conveniences.

Additional Benefits of Properties with Good Views

Investing in properties with good views brings several additional benefits beyond financial gains:

Higher Rental Demand: Properties with attractive views are more likely to attract tenants quickly, reducing vacancy periods and ensuring a steady rental income. Tenants often prioritise views when choosing a rental home, willing to pay a premium for the added enjoyment and quality of life it provides.
Increased Tenant Retention: Tenants who enjoy a pleasant view are more likely to renew their leases, reducing turnover rates and the associated costs of finding new tenants. A beautiful view can significantly enhance a tenant’s living experience, leading to higher satisfaction and long-term occupancy.
Enhanced Marketability: Properties with good views stand out in the market, making them easier to sell. When faced with visually arresting scenery, potential buyers or tenants can feel an emotional reaction, making them more interested in the property. This emotional appeal can translate into quicker sales or rentals, even in competitive markets.
Lifestyle Appeal: Properties with scenic views often align with lifestyle preferences, such as the desire for tranquillity, nature, or vibrant urban living. This alignment with personal lifestyle choices can make such properties particularly desirable, commanding higher prices and rental rates.

Conclusion

Investing in BTL properties with good views can significantly enhance the return on investment. Such properties not only attract higher purchase prices but also tend to appreciate faster and command higher rental rates. Whether it’s the serenity of a waterfront, the calm of green spaces, or the vibrancy of a cityscape, views play a crucial role in boosting property values.

As Jamie Johnson, CEO of FJP Investment, aptly puts it, “A stunning view isn’t just a window to beauty; it’s a window to higher returns and greater marketability.” Therefore, for investors looking to maximize their returns, prioritizing properties with desirable views can be a strategic move. The emotional and psychological appeal of a good view, coupled with its financial benefits, makes it a valuable asset in the competitive BTL market.

In conclusion, if you have the opportunity to invest in a property with a stunning view, it’s a choice that can pay dividends in the long run. Whether you’re a seasoned investor or a first-time buyer, considering the view can be a key factor in achieving a successful and profitable investment.