Premium paid by buyers to live in a National Park is revealed
House prices in National Parks are high as the locations are highly desirable, says Nationwide's Andrew Harvey.
Homebuyers are paying a 24% premium for homes in Britain’s National Parks, research shows.
Analysis by Nationwide found that a property located within a National Park sells for around £66,500 more than the current house price of £278,784.
The research also suggested that there is a 6% ‘fringe benefit’ premium for homes within 5km of a National Park.
National Parks are highly desirable areas to live in.”
The New Forest was named as the most expensive National Park to live in at £563,000.
It is followed by the South Downs and the Peak District at £485,000 and £450,000 respectively.
The research revealed that there is a 14% premium for properties located in a National Landscape – Areas of Outstanding Natural Beauty (AONBs) – led by the Surrey Hills at £710,000 and the Chilterns at £685,000.
High house prices
Andrew Harvey (pictured), Nationwide’s Senior Economist, says: “National Parks are highly desirable areas to live in thanks to the beautiful countryside.
“Those living in the parks are ideally placed to make the most of the great outdoors and take advantage of a range of activities and amenities. Development is also controlled with limited new housing construction, which may also help to explain why house prices tend to be relatively high.”
Commenting on the data, Nathan Emerson, Chief Executive of Propertymark, says: “Nationwide’s figures underline just how desirable homes in National Parks and National Landscapes are, and property agents see this demand first-hand. The appeal of the countryside, lifestyle and close-knit communities means buyers are often prepared to pay a significant premium for the right property.
“But that desirability comes with a downside for local communities. Agents regularly see local buyers competing with people relocating from urban areas, commuters and those looking for second homes or a rural lifestyle. With relatively few properties coming to market, that competition can make it extremely difficult for local people, particularly younger households, to afford a home where they grew up or work.
“The figures for the New Forest and Surrey Hills demonstrate just how significant that premium can be. These are highly attractive places to live, but the challenge is ensuring that the people who live and work in these communities can continue to afford to call them home.”
