Don’t miss the boat on this homebuying boom

Living on a river boat might seem the preserve of bohemians or nature lovers but a growing number of city dwellers are trading brick walls for barges.

More and more first-time
buyers are turning to houseboats as an alternative to getting on the housing ladder while at the opposite end of the spectrum
retirees are raking in substantial profits from their homes and taking to the waters.

“Living on the river is definitely becoming more popular,” says Richard Fairhurst, editor of Waterways World magazine. “We are certainly seeing residential boating – whether static or continuous cruising – growing at a faster rate than boating in
general.”

He estimates that the number of residential boaters in the UK is rising at perhaps 5-10 per cent per year. A good proportion of this growth is coming from individuals who are frustrated with increasingly unaffordable housing.

“A fair amount of people have been priced out of the property market and are thinking ‘why not try out this canal living?’” says Fairhurst.

According to the Residential Boat Owners Association, there are now about 15,000 people permanently residing on boats. They are moored along canals, rivers and coasts, in cities, the country and harbours.

Beryl McDowall, chairman of the RBOA, says there has been an obvious increase in the number of young people setting up homes on waterways.

“I see a lot more young people when I’m out and about on the river. I expect rising property prices are a factor in their decision to move to a boat,” she says.

With a typical starting price for a basic secondhand narrow boat in the region of £20,000, it is not surprising that this alternative lifestyle has caught the eye of first-time home buyers.

According to Nationwide, the average property price in London has risen to £252,724. And riverside properties command high premiums. Knight Frank, the estate agency, says two-bedroom riverside flats in developments between the Battersea and Albert bridges can go for up to £955,000. Knight Frank recently had a top-of-the-range spacious two-berth houseboat for sale in this area for £475,000. Less luxurious boats can sell for a fraction of this price.

Jonathan Ludford at British Waterways says: “Waterside locations are the place to be right now. There has been huge investment in rivers and canals . . .  there are more boats on the network now than at the height of the industrial revolution.”

Living afloat is one way to bag river views in desirable places such as Chelsea, Battersea or
Little Venice for a fraction of the cost.

Of course boats can vary in price just as much as houses. The most luxurious boats, which are made from solid oak and have spacious living areas, fast internet connections, king-sized beds and fully functioning bathrooms, can cost as much as £500,000.

Boats though are not as solid an investment as conventional property. Richard Goodwin at Harral Brokerage Services in Cheshire, says that a new £70,000 narrow boat might depreciate by 10-12 per cent in the first year.

“But after the first year they hold their price very well and can even increase in value if demand is high enough,” says Goodwin. In addition, most boaters buy their vessels outright so do not have the large interest payments of a mortgage.

However, the biggest obstacle to moving to the river is getting a residential mooring. As Fairhurst says: “Buying a boat is easy. The problem is finding somewhere to put it.”

Waiting lists for mooring spaces can be up to five years long in the most sought-after river spots. Some boat dwellers prefer not to have a permanent mooring and “cruise continuously”, but those with regular jobs or children in school really have to secure a fixed spot. There are also a number of running costs that can add up. McDowall says: “Yes, you can buy a boat cheaper than a house but people often do not realise the hidden costs.”

Experts say you would be lucky to get a mooring anywhere in the UK for less than £1,000 a year. Spaces along the Thames and other popular waterways such as the Oxford canal, can be up to around £8,000 per year. McDowall has also seen some fairly sharp rises in mooring costs in prime areas over recent months as demand has increased.

There are more spaces in new marinas, as development of these areas continues, but these still get snapped up quickly.

Then you have to pay council tax, licensing fees, insurance and maintenance costs and buy a boat safety certificate. Standard narrow boats are typically classed as “band A” properties for council tax purposes, but some boats can be much more expensive. The Royal Borough of Kensington and Chelsea says that at least one boat moored in Cheyne Walk, a popular area for houseboats, falls into band D, costing £1,015 per year in council tax. However this is still cheaper than bricks-and-mortar properties – the council tax on a two or three-bedroom apartment on the banks of the river Thames could be about £2,000.

Another consideration is that space on board is restricted and boat owners do have to be prepared to get stuck into some less- than-glamorous chores. Fairhurst says: “A lot of people have a very romantic idea of living on a boat but in reality it’s not like that.”

Anyone thinking about moving to the river would have to be willing to perform tasks such as emptying chemical toilets, filling up the water tank in wet and freezing conditions and carrying heavy gas cylinders and coal for the stove.

Ludford says: “Many people wander down towpaths at this time of year and think they are attractive. But fast forward six months to the middle of winter and it’s a different story.

“People have to think about how they would feel walking half a mile down a muddy path late at night to get back to their boat.”