Buyers are paying a 39% premium for homes with larger gardens, Savills says.
The estate agency analysed the relationship between garden size and house prices, revealing that purchasers are paying around £424,000 for an average 1,200 sq ft house with a large garden, compared to £260,000 for one with the smallest sized gardens.
Savills latest research, which uses pound per square foot (£psf) data to account for property size, reveals a strong correlation between the size of the home’s outdoor space and the prices being paid for the inside space.
Across the UK’s regional markets, neighbourhoods in the top decile in terms of outside space also have the highest average value at £353 psf. Whereas, for homes with the smallest outside space, that figure is almost two-fifths (-39%) lower at £216.
Overall, buyers are paying one-fifth less (-18%) less than the local authority average for homes in neighbourhoods with the smallest outside space. Whereas the premium paid for homes within neighbourhoods that have the largest outdoor space is 8.8% higher.
Frances McDonald, director of residential research at Savills, said: “The value of private outdoor space is one of the pandemic’s legacy trends that’s become permanently ingrained in the home buyer’s psyche. Demand for homes with larger gardens and outside space has increased significantly over the past three years, as buyers place a greater value on the lifestyle and wellbeing elements of a home.
“While larger homes with big gardens have always come at a premium, it’s now evident that buyers are also paying more for indoor space if it has a large garden attached.”
Savills research also revealed a disparity between rural and urban areas, with a greater premium paid for larger outside space in urban markets, where they are more of a rarity. In fact, the price per square foot for properties in urban areas with the largest gardens (£481) is more than double that of those with the smallest (£216).
In rural areas, where outside space tends to be more prevalent, a premium is still evident but it’s less significant (8.3% vs 12.9% in urban locations), however the discount for properties with the smallest outside space is more pronounced (-24% vs -17.7% in urban locations).
McDonald continued: “In rural areas, having a garden is more of an expectation, which means there is a less clear correlation between garden size and house prices. By contrast, over the last three years in particular, there’s been tough competition between buyers in more urban locations to secure a property with large outdoor space as they have become vital means of escaping the pressures of metropolitan living.”