Sales data reveals that buyers in London are willing to pay more for access to a communal roof terrace. Research by Dataloft and HomeViews suggests that a roof terrace can command an 8% price premium and correlates with higher ratings by residents.
Dataloft research showed that the price per square foot for new developments with a communal roof terrace was an average of 8% higher than for comparable new build sales in the same postcode district.
In addition, HomeViews looked at the resident ratings for 431 new build developments in London, of which 99 offered a roof terrace. Residents are asked to rate their buildings out of five on a range of facilities and the ratings make up a Facilities score. The Facilities ratings achieved by developments that offered some form of communal outside space (roof terrace and/or garden) were compared against buildings with no communal outside space.
HomeViews found that developments with both a roof terrace and a communal garden achieved a Facilities score 8% higher than developments with no communal space. In comparison, developments that had communal gardens but no roof terrace achieved a 5% higher score for Facilities than developments lacking any communal space.
This suggests that communal outdoor spaces make a development more attractive to residents and that when that space comes with a view, it is appreciated more than a garden at ground level.
A similar preference was evident in the rental market. The HomeViews 2020 National Build to Rent Report analysed reviews and ratings from 84 Build to Rent developments. A third of the developments offered their residents the use of a communal rooftop area. This was found to correlate with a 7% higher Facilities score for those buildings compared to buildings no communal rooftop.
Resident reviews on roof terraces:
“Well-proportioned rooms and roof garden access make this a very appealing house.”
Verified tenant review on HomeViews, April 2020, Kidbrooke Village SE3
“My favourite thing about this development would have to be the rooftop, it is really nice to relax there after a long day at work!”
-Verified tenant review on HomeViews, June 2020, Carlton House SW15
“The facilities are good, especially the pool, gym and roof terrace – perfect in summer! The building is always kept very clean in communal areas.”
-Verified tenant review on HomeViews, April 2020, No.1 Upper Riverside, Greenwich Peninsula, SE10
-“We also really like the rooftop garden where our kids can play games in a safe environment without needing to go out on the streets.”
Verified tenant review on HomeViews, July 2019, No.16 Sutton Court Road, SM1
