National Parks and Areas of Outstanding Natural Beauty boost house prices by up to 25%

Posted on Tuesday, August 30, 2022

Properties situated within a National Park command a 25% house premium, according to new research by Nationwide Building Society. 

Properties within 5km of a National Park are 7% higher on average, while those located in an Area of Outstanding Natural Beauty (AONB), such as the Cotswolds, Chilterns and Surrey Hills, are 13% higher.

The figures show that the New Forest remains the most expensive National Park in which to purchase a property, with an average price of £650,000. Villages within the park include Ashurst, Lyndhurst and Brockenhurst.

The South Downs has the highest resident population of any of the National Parks at 118,400. The park includes a number of sought-after towns in Hampshire and Sussex such as Petersfield, Liss, Midhurst and Petworth.

AONBs in England and Wales have been designated for conversation due to their significant landscape value. They all differ greatly in terms of size, type and use of land. AONBs cover 15% of England’s land area and are home to over one million people.

Whilst not as well as known as National Parks, these are desirable places to live and as such tend to see relatively high house prices.

Surrey Hills is the most expensive AONB in which to purchase property, with average prices of £750,000. The AONB was designated in 1958 and covers a quarter of the county of Surrey. Around 37,000 people live in the Surrey Hills AONB, mostly in small villages and rural hamlets, such as Shere, Mickleham and Westhumble.

Andrew Harvey, senior economist at Nationwide Building Society, said: “National Parks continue to be highly desirable areas in which to live thanks to the beautiful countryside. Those living in the parks can 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 also helps to explain why prices tend to be relatively high.

“Our analysis suggests a property located within a National Park attracts a 25% premium over an otherwise identical property. This is around £67,600 in cash terms based on the current UK average house price (£270,452 in Q2 2022).

“The premium is five percentage points higher than in 2020 and follows a trend we have seen since the pandemic, with increased demand for properties in more rural areas. We’ve also seen strong house price growth in a number of areas closely associated with tourism, with signs that some of the demand may be driven by those buying holiday or second homes."

Via @PropertyReporter