Waterside properties are outperforming the rest of the UK housing market for the first time in five years, with more than half selling above asking price.

Homes overlooking rivers, lakes, canals and sea were today labelled some of the UK’s most ‘recession proof,’ as figures show prices are up 23% in five years.

Data shows waterside property prices grew by 10% in 2022, compared to the UK average of 8%.

Estate agency Jackson-Stops, which carried out a review of waterside properties, today hailed them as a potentially lucrative investment.

The review found the average price for a home near water jumped by £32,760 in 2021 to 2022, while some riverside locations had a price premium of 64%.

Jackson-Stops chairman Nick Leeming said tranquillity and scarcity were a winning combination for buyers.

“It’s long been reported that our waterside homes- properties looking over rivers, lakes, canals and sea- are some of the UK’s most recession-proof property types,” he said.

“Their tranquillity combined with their scarcity tend to offer a winning combination for many buyers, often benefitting the most from house price booms, like the one we saw in 2021 during the race for space, for both green and blue landscapes.”

The review also revealed properties overlooking rivers and streams generally achieved higher premiums compared to seaside properties.

Waterside properties in Wrexham near to River Clywedog carried a premium of 64%, with Wokingham and Berkshire along the Thames achieving 37% and Cheshire along the River Dee 32%.

The only coastal locations to achieve such high premiums were Brighton & Hove, with 78%, and Bournemouth and Poole (36%).

Leeming said homes with moorings and direct water frontage were ‘absolute gold dust.”

“Planning permission can be hard fought to build on these already populated locations due to their proximity to water – we often see developers get there first,” he added.

“What this means is those homes that offer this unique waterside lifestyle often operate in their own sub-market, far exceeding anything similar inland. On some occasions, they can sell for a 20% to 30% premium when the market conditions are right.”

Jackson-Stops’ research also revealed 57% of waterside properties sold above guide price in 2922, up from 52% the year before. In 2020, the figure was 27%.

Crispin Harris, director of Jackson-Stops in Cheshire, hailed waterside properties as a promising investment.

“Families are drawn to the idyls of a life by water, whilst investors are tempted by the higher capital returns over time that a waterside home can harness compared to others,” he said.

“As the demand for waterfront properties increases, their value may also increase, making them a potentially lucrative investment.

“However, it’s important to note that not all waterfront properties are created equal, and factors such as the size of the body of water, proximity to amenities, and overall condition of the property can also impact its value.”

Harris added a current trend was for downsizers seeking a tranquil waterside view.

“There is a growing body of research that suggests that living near water can have positive effects on both physical and mental wellness,” he added.