Houseboats get a fresh look in London’s brutal real estate market

THEY come with stunning water views, exquisite outdoor spaces and discounted prices that their neighbours could never match. The catch? They float.

Luxury houseboats are getting a post-pandemic glow-up in London. On land, higher mortgage rates are dampening demand for houses and flats. But on the River Thames, the vessels’ lower costs, prime locations and relative energy efficiency are attracting new residents trying to eke out a bit of luxury even as inflation bites. 

“It’s a super-yacht location that super yachts can’t get into,” said Will King, the 57-year-old founder of the King of Shaves toiletries company. King moved onto a one-bedroom houseboat christened the Offa in March. He considers the craft, moored off the city’s tony Chelsea district, a major lifestyle upgrade from the modest flat he was previously renting. Offa is kitted out with a barbecue, DJ stand and artificial grass on its large back deck. 

Floating homes have long been part of residential life in London, but the capital’s waterways have grown increasingly popular over the past decade. The Canal & River Trust says the number of boats it counted in London this year – 4,315 – represents an 86 per cent increase since 2012. On the Thames itself, the Port of London Authority estimates there are 330 houseboats moored on the 153-km stretch from the western suburbs of London to the North Sea.

“They’re for a certain type of individual in central London who wants to be near their work and would like something slightly different,” said Mayow Short, head of property at real estate firm Savills’ Battersea Park office, not far from several wharves where houseboats dock. One of the main benefits of such docks is their proximity to the offices and entertainment venues of central London, but at lower prices than nearby properties on land. 

The lifestyle isn’t for everyone. Bathrooms and sleeping areas can be more limited than they are on land, while other subtle comforts are harder to come by, or at least require more organisation. Repairs can be complicated and require special parts and knowledge. After buying a craft, new owners need to consider mooring fees, which can range from a couple thousand to nearly £20,000 (S$32,862) a year. And traffic on the Thames can literally rock the boat – hard.

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Still, houseboats can be a more affordable option in London’s brutal housing market. The average residential sale price in central London over the last year was around £1.35 million. In the rental market, meanwhile, demand is vastly outpacing the number of available units. Average rent in the third quarter posted the largest-ever annual jump to £2,343, according to real estate website Rightmove. The houseboat market is far from uniform, but Ian Tichener, head of property firm RiverHomes, estimates that an entry-level boat could cost around £300,000. Rent varies dramatically as well, but experts say square-footage costs are generally lower than they would be in comparable units ashore. 

Michael Fox is benefiting from the square-footage discount on houseboat rent. The 55-year-old partner at a wealth management firm moved onto a 130-foot Dutch barge on the Thames in July with a friend. He is now paying the same amount it cost him to rent a flat in London’s Little Venice neighbourhood, but is getting twice the space. 

Fox’s boat has two bedrooms, a bathroom, a galley and a lounge with a retractable glass roof. He left the roof open almost all summer, and spent months literally sleeping beneath the stars. Living on the water puts him in direct contact with some unexpected sides of urban wildlife, including a family of foxes that plays outside the boat’s portholes, and the occasional seal swimming in the Thames.

The open-plan features and novelty location make the barge great for entertaining, as well as working from home. On video calls, people always ask him if he’s on a boat.

Tichener of RiverHomes said there’s no single type of houseboat buyer. But he does see two frequent shoppers: first-time buyers and recent divorcees. The former may have saved up cash for a deposit, but with mortgage rates skyrocketing and home prices still elevated in central London, they often can’t buy a flat in the location they want. The latter may want to stay near children living on land with a former spouse, but can only afford the location if it’s on the water. 

Residents like King say it’s worth it for the lifestyle. So far this year, he has hardly heated his well-insulated residence and believes he will save on energy costs because he uses propane for gas and a small heater for warmth. In a few weeks, he plans to put up a 20-foot Christmas tree. 

“I recommend it,” he says of Thames living. “For anybody who wants to enjoy life in London and have an amazing time.” BLOOMBERG