Buyers pay premium of 21% to live within a UK National Park

Taylor Scott International News

The price premium for properties within a National Park in the UK has increased from 18% to 21%, new research shows. And the premium for a property within five kilometres of a National Park is 8%, according to the research by the Nationwide Building Society. Around 190,000 households are located within the boundaries of National Parks, and the research suggests that this factor alone attracts a significant price premium. Indeed, a property located within a National Park attracts a 21% price premium over an otherwise identical property. This is around £39,000 in cash terms based on the current average house price of £188,810 and the data also shows that the price premium for being within a National Park has increased slightly from 18% a year ago, when the research was last conducted. Moreover, the premium is not limited entirely to properties located within the boundaries of the National Park. There is also evidence of a ‘fringe benefit’ for properties located just outside the boundaries of National Parks. ‘National Parks are highly desirable areas in which to live thanks to the beautiful countryside. Development is also strictly controlled, with very little in the way of new housing construction, which also helps to explain why prices are relatively high,’ said Robert Gardner, Nationwide's chief economist. The South Downs has overtaken the New Forest as most expensive National Park to buy property within and this is due to stronger price growth over the last year. It is England’s newest National Park, spanning 1,624 square kilometres across Hampshire and Sussex and contains the highest number of households at around 47,000. It includes a number of towns situated in the western Weald, including Petersfield, Liss, Midhurst and Petworth. The Peak District serves the highest number of people, with around 5.9 million living within 25 kilometres of its boundary. Its central location makes it accessible from major population centres such as Derby, Sheffield and Manchester. It is also a desirable place to live and average prices within the park have increased by 11% over the past year. The Cairngorms in Scotland is the largest National Park by land area, but is located within a very sparsely populated part of Scotland. Loch Lomond and the Trossachs are closest to major cities such as Glasgow and Edinburgh, with 1.1 million people within 25 kilometres. National Parks cover 20% of the land area in Wales, the highest proportion of the home nations. The largest of these is Snowdonia, covering 2,176 square kilometres. Snowdonia remains the least expensive National Park to live within, although did see the strongest growth over the last year. Continue reading →

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