Investor Tip - buyers happy to pay handsome premiums for bathrooms

Britons’ obsession with bathrooms is growing, according to estate agent Savills.

The latest analysis found that across London, asking prices for homes with two bathrooms cost an average of 31% more (on a price per square foot basis) than those with only one bathroom.

Generally, flats see greater premiums, according to Savills. The average asking price for a typical one bed, one reception room, one bathroom flat in London is £427,000 (or £743 / sq ft) while the average one bed, one reception room, two bathroom flat in London is £978,00 or £1,086 / sq ft.

This represents a 46% uplift on a pound-per-square-foot basis and more than double in actual value terms.

By contrast, asking prices for one-bedroom flats that have an additional reception room command no premium on a pound per square foot basis.

Similar trends can be seen for London houses. Looking at a typical three bedroom house with two reception rooms, asking prices (on a £/ sq ft basis) are 55% higher for homes with three bathrooms, compared to those with only two.

Outside of London premiums tend to be lower but are still evident. Overall, there’s a 20% uplift in asking prices (on a £/ sq ft basis) of homes with two bathrooms compared to those with just one.

“The relationship between bathrooms and the home have evolved over the years – but have always been an indicator of luxury. While once those most fortunate were able to have their own loo inside the home, today buyers are paying a premium to not even have to share a bathroom with their household at all,” says Frances McDonald, director, residential research at Savills.

“Across London, asking prices for homes with two bathrooms cost an average of £844/ sq ft, 31% higher than those with only one bathroom (£643/ sq ft). In the regions, premiums tend to be lower but asking prices are still 20% higher, on average, for two bathroom homes (£325/ sq ft), compared to those with 1 bathroom (£272/ sq ft). The premium for any additional bathrooms is also evident (across London and the regions), with a particular jump up for properties that boast the luxury of four bathrooms.

“Flats tend to carry a higher premium than houses as space is likely to be more restricted and opportunities to extend are usually limited, so the prevalence of bathrooms from the offset is more important.”