Homebuyers Would Pay £9k Over Asking Price to Snag a Royal Property

• 24% of adults desire to live near a Royal property drives buying decisions
• Royalists willing to pay £9K over asking price to live near a UK palace
• Influx in property interest comes following Air BnB cash incentive for Coronation

A quarter of UK adults are more attracted to areas to buy which are close to a Royal residence, according to specialist lender Together. This follows Airbnb’s new £100 incentive for London homeowners willing to let out a spare room over the King’s Coronation weekend¹ as locals and tourists prepare to flock to London to celebrate.

Even with the current average UK house price now at £288,000 – £16,000 higher than 12 months ago² – Together finds potential buyers would still consider paying as much as £9,070 above the asking price to guarantee living in a coveted royal borough.

Whether purchasing a forever home in a royal borough or simply wanting to guarantee local accommodation for the King’s Coronation via Airbnb, Together is already seeing an influx in property interest across the Capital.

Looking at current house prices, the average price for a typical residential property near Kensington Palace – one of the top five best known Royal properties – costs as much as £2,139,409 more than the UK average, according to the latest study.

For example, house prices in Kensington and Chelsea, near Kensington Palace, currently average around £2,427,409³ while properties closer to Sandringham Estate sit closer to the UK average and those near Balmoral Castle are less.

Average sold price for a property in the last year by Royal location versus National Average

Surprisingly, nearly half – 49% – of younger buyers, aged 18-34 years old, said their buying decision would be influenced by the property’s location near a Royal palace. This compares to 26% of those aged 35 to 54 years old and just 7% of those aged 55 and over.

Over a third (36%) said moving to a Royal borough would make them feel safe living in the area, 31% believed it would increase the value of their property when they came to sell and 26% thought it would help boost the overall financial value and economic success of the surrounding town.

However, nearly a quarter (23%) admitted the main reason for wanting to buy and live near a Royal property would purely be to tell people, with 18% believing doing this would impress their friends and family.

Scott Clay, Head of Introducers at Together, said: “In the run up to The King’s Coronation, our research highlights an interesting property trend, adding to existing forecasts of significant spikes in tourism and Air BnB bookings in the lead up to the Bank Holiday weekend.

“Whether inspired by the ceremony and new generation of royals coming to the fore, or with the late Queen in mind, the weekend should result in a much-needed boost for the UK economy and injection of activity within what has been a relatively stagnant property market this year – even if just for the short-term.

“Those looking to purchase a property in these higher priced areas, or looking for a similarly listed or historic character property should feel encouraged that there are specialist lenders like Together, with the specific mortgage products designed to help them achieve their ambitions.”