London homebuyers seeking properties with basement space face an acute shortage despite the significant value such features can add, according to new research from prime London property brokerage Jefferies London.
The analysis shows that basements – long prized for unlocking extra space in the capital’s densest neighbourhoods – are present in just 2.2% of current residential listings. Yet where they do exist, they can lift a home’s asking price by between 12.5% and 20%.
On the basis of London’s average house price of £553,258, that premium equates to an uplift of between £69,157 and £110,652.
In the most expensive parts of the capital, the financial impact is far greater, underlining the role basements play in the prime and super-prime markets.
PRICE PREMIUMS
Hammersmith & Fulham offers buyers the highest chance of securing a basement, though even there only 5.2% of homes currently for sale include one. Wandsworth follows at 4.7%, ahead of Waltham Forest (4.1%), Newham (4%) and Haringey (3.9%).
The greatest price premiums are found in Kensington & Chelsea, where a basement can add as much as £236,962 to a property’s value, based on an average local price of just under £1.2m. Westminster follows with a potential uplift of £173,234, ahead of Camden (£160,186), Richmond upon Thames (£153,592) and Hammersmith & Fulham (£147,719).
BASEMENT PREMIUM
Damien Jefferies (main picture, inset), Founder of Jefferies London, says: “Buyers in London are increasingly focused on securing homes that offer maximum usable space, and this is especially true in the Prime and Super Prime markets.
“Many of these homes sit within historic areas where extending the footprint above ground is simply not an option, which is why basement space has become such a prized asset.
“When executed well, particularly across multiple levels, a basement not only transforms how a property functions, but elevates it into a truly luxury home, often housing features such as swimming pools, private cinemas or wine cellars.”
RARE FIND
But he adds: “The challenge is that these properties are exceptionally rare. Strict planning controls and past controversy around basement development mean that both existing basements and properties with genuine basement potential are in limited supply.
“That scarcity is precisely what underpins the significant price premium they command. While opportunities are few, buyers with the means, and crucially the right agent to identify and access them, can still secure a home with this level of premium, future-proofed space in London’s most desirable locations.”
