One would expect that buying a home situated within protected parkland might demand a premium price and the Lloyds TSB National Parks Review tracks those premiums for privileged buyers shopping in England and Wales. All property located in National Parks throughout the United Kingdom (UK) command a higher price than properties in those counties located outside the parks, but properties in the Peak District draw premiums that are 107% higher than typical homes. The average price for homes in UK National Parks has risen 87% in the last 10 years and experts believe that the relative lack of supply and higher quality of life associated with these homes will keep their value rising. For more on this continue reading the following article from Property Wire.
Buying a home within a National Park in England and Wales costs £90,000 more as living in an iconic beauty spot adds a major premium to a property’s value, research shows.
House prices in National Parks have increased £328 a week in the last 10 years, according to the Lloyds TSB National Parks Review which tracks house price movements in 12 National Parks across England and Wales.
This means that prices on average, £87,968, some 45%, higher than their county average. This premium is £31,342, or 55%, higher than in 2002 when it was £56,626.
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All National Parks have higher house prices than the average for their county, with five of the 12 National Parks tracked attracting a house price premium of over £100,000. In percentage terms, homes in the Peak District command the largest premium relative to the average for the surrounding area, at 107% or £162,650.
The next highest premiums to the surrounding area are in the New Forest at 94% and the Lake District at 70%. Homes in Snowdonia command the smallest premium, with property prices just 6% above the county average.
The average house price in National Parks across England and Wales has risen by £170,335, some 87%, over the past ten years, from £194,924 in 2002 to £365,259 in 2012. Homeowners in five of the 12 National Parks examined have seen the value of their home more than double over the past decade. Snowdonia recorded the biggest increase with a 111% house price rise, followed by the North York Moors at 109% and the Pembrokeshire Coast at 106%.
In contrast, the Broads recorded by far the smallest rise in house prices over the past ten years with a gain of just 19%.
The research also shows that home affordability in National Parks has deteriorated significantly over the past decade. The average National Parks house price of £365,259 in 2012 is, on average, 10.8 times higher than average gross annual earnings. This is up from a multiple of 7.7 in 2002.
The New Forest is the least affordable National Park with an average house price of £474,883 that is 13.3 times local gross average annual earnings. The South Downs at 11.8 times average earnings is the second least affordable National Park, followed by Dartmoor at 11.4. Snowdonia is the most affordable National Park with an average house price of £167,773 that is 6.5 times local average annual earnings.
‘The quality of life benefits associated with living in the some of the country’s most scenic destinations resonate strongly among many homebuyers. Such destinations are also popular with those looking for a second property. As a result, properties in National Parks typically trade at a significant premium to homes in neighbouring areas,’ said Suren Thiru, housing economist at Lloyds TSB.
‘The downside of high property prices is that homes are often difficult to afford for those living and working in such locations; a situation that has got worse over the past decade as prices have risen sharply,’ added Thiru.
This article was republished with permission from Property Wire.