New research indicates that property located in appealing country locales across the United Kingdom (UK) appreciates faster than properties in other markets. A survey of 32 locations within the country’s 32 Areas of Outstanding Natural Beauty (AONBs) shows that prices have appreciated some 87% between 2002 and 2012, a rate three times higher than the average appreciation of homes. The UK defines AONBs as so pristine that it is in the country’s best interest to safeguard and preserve them. Surrey Hills tops the list of AONBs, followed by High Weald and Kent Downs. Property values in these areas have blossomed over the years, while standout Solway Coast has seen a 124.5% increase in the last decade – doubling its value in 2002. For more on this continue reading the following article for Property Wire.
House prices in the most picturesque locations in England have increased by an average of £110,000 of £900 a month over the past decade, research shows.
The average house price in postal districts within the 32 Areas of Outstanding Natural Beauty (AONBs) in England surveyed by Lloyds TSB have risen by 87% from £125,860 in 2002 to £235,215 in 2012.
The rise in the typical AONB property price since 2002, at 87%, was nearly three times the 32% increase in average earnings over the same period. As a consequence, home affordability in such locations has deteriorated over the past decade. The average AONB house price of £235,215 in 2012 is, on average, seven times higher than average gross annual earnings. This is up from a multiple of 4.9 in 2002.
An Area of Outstanding Natural Beauty is defined as a precious landscape whose distinctive character and natural beauty are so outstanding that it is in the nation's interest to safeguard them. The Lloyds TSB Areas of Outstanding Natural Beauty House Price Review tracks house price movements in 32 AONBs in England and is based on data from the Land Registry.
Five AONBs have seen house prices double over the past decade. Solway Coast in Cumbria recorded the biggest increase, at 124.5%. This was marginally ahead of the Northumberland Coast, which saw the second biggest rise in house prices at 123.8%, followed by the Kent Downs at 115% and the at forest of Bowland in northern England at 107%.
At the other end of the scale, Dedham Vale on the Suffolk Essex border recorded the smallest increase at 61%, followed by the North Wessex Downs at 66%.
Surrey Hills is the most expensive AONB in England with an average house price of £407,568, followed by High Weald at £329,441 and the Kent Downs at £320,090. The Forest of Bowland at £212,301 is the most expensive AONB outside southern England. In contrast, Lincolnshire Wolds at £128,608 and Cannock Chase at £136,774 are the only two ANOBs in the survey with an average house price below £150,000.
On average, homebuyers are required to part with an extra £14,951, or more to live in an English AONB. This is 87% higher than the average premium of £8,009 in 2002.
The research also shows that 66% of AONBs have a higher average house price than the regions that they are located within. Surrey Hills in the south east has the largest premium with houses trading at an average of 50% above the average house price in the region. This is followed by Forest of Bowland and Shropshire Hills where house prices trade at a premium of 38%.
‘The value of homes within areas of outstanding natural beauty has risen substantially over the past decade. The relatively high property values in many of these locations reflect the quality of life benefits associated with living in some of our most idyllic beauty spots,’ said Suren Thiru, housing economist at Lloyds TSB.
‘However, the fact that property prices have typically risen considerably faster than average earnings has created significant affordability difficulties for many of those living and working in such locations,’ she added.
This article was republished with permission from Property Wire.