Lloyds Bank

Buying a home in a national park will cost an extra £116,500

26 November 2017

Buying a home in a national park will cost an extra £116,500

  • New Forest is the most expensive national park (£581,448) and Snowdonia is the most affordable (£180,126)
  • The average house price in a national park is 11.7 times higher than local average gross annual earnings.

Homes in national parks attract a premium of £116,501, according to new research from Lloyds Bank. House prices in the twelve national parks surveyed* are, on average, £116,501 above the average for their surrounding county - a house price premium of 46%.

The majority (11 of 12) of national parks have higher house prices than the average for their county**, with four – the New Forest, the South Downs, the Peak District and the Lake District - attracting a premium in excess of £150,000.

The average house price in a national park of £368,804 is 11.7 times higher than local average gross annual earnings. The comparable ratio for England and Wales as a whole is 8.0.

Andrew Mason, mortgage products director, Lloyds Bank comments:

 

"Buying a home in one of the most beautiful spots in the country usually comes with a substantial price tag. New development is also very limited in these areas which can also be a contributing factor.  

"With the difference between local earnings and property prices being so large, it can make it very challenging for those living and working in national parks to buy their own home."

House prices in national parks up by over £51,000 since 2007, £20,000 lower than the rest of England and Wales

The average house price in national parks across England and Wales has increased by £51,463 (16%) over the past ten years, from £317,341 in 2007 to £368,804 in 2017. The biggest percentage increases were in South Downs (41%) and The Broads (23%).

However, the £51,463 increase is £19,998 lower when compared to the average house price rise since 2007 across the whole of England and Wales.  

The Lake District commands the highest price premium

Properties in the UK’s most visited national park command the largest premium with average prices more than double (105% or £186,351) those in the surrounding area.  

New Forest (86% or £268,856) and the Peak District (84% or £151,969) have the second and third highest premiums.  

Snowdonia is the only national park where property prices are below the average for the surrounding area (-3% or -£4,936). With an average house price of £180,126, which is 6.8 times local average annual earnings, Snowdonia is the most affordable national park in the survey.  

New Forest is the least affordable national park

The average house price in New Forest is £581,448, 15.2 times local gross average annual earnings. South Downs is the second least affordable with an average house price to earnings ratio of 14.9, followed by theLake District (11.5).
 

Table 1: National Parks House Prices - Premium to County

National Park

Average House Price  2017* (£)

Average House Price in County 2017*** (£)

Premium to County  %

Premium to County  £

Lake District National Park

364,193

177,843

105%

186,351

New Forest National Park***

581,448

312,592

86%

268,856

Peak District National Park***

332,706

180,737

84%

151,969

South Downs National Park

536,208

326,832

64%

209,377

Pembrokeshire Coast National Park

254,330

168,368

51%

85,962

Dartmoor National Park

309,154

243,871

27%

65,283

Yorkshire Dales National Park

277,557

219,247

27%

58,309

The Broads Authority

311,314

247,657

26%

63,657

Exmoor National Park

304,627

243,542

25%

61,085

North York Moors National Park

298,936

245,366

22%

53,570

Brecon Beacons National Park

222,631

194,355

15%

28,276

Snowdonia National Park***

180,126

185,062

-3%

-4,936

National Parks Average**

368,804

252,303

46%

116,501

Source: Lloyds Bank, Land Registry

Northumberland National Park excluded from the analysis due to insufficient number of sales

*January to June

** Weighted average by transactions.

*** Where more than one county is involved, a weighted average of relevant counties is used.
 

Table 2: Ranked by highest % house price increases, 2007- 2017

National Park

Average House Price  2007* (£)

Average House Price  2017* (£)

10 year % change

10 year £ change

South Downs National Park

379,656

536,208

41%

156,552

The Broads Authority

254,064

311,314

23%

57,251

Lake District National Park

313,470

364,193

16%

50,723

New Forest National Park

502,042

581,448

16%

79,407

Peak District National Park

287,365

332,706

16%

45,340

North York Moors National Park

258,950

298,936

15%

39,986

Brecon Beacons National Park

204,925

222,631

9%

17,706

Dartmoor National Park

291,246

309,154

6%

17,908

Exmoor National Park

290,002

304,627

5%

14,625

Pembrokeshire Coast National Park

245,115

254,330

4%

9,215

Snowdonia National Park

180,438

180,126

0%

-311

Yorkshire Dales National Park

290,667

277,557

-5%

-13,110

National Parks Average**

317,341

368,804

16%

51,463

Source: Lloyds Bank, Land Registry

Northumberland National Park excluded from the analysis due to insufficient number of sales

*January to June

** Weighted average by transactions.

Table 3: Ranked by home affordability, 2017

National Park

Price to Earnings ratio, 2017*

Snowdonia National Park

6.8

Brecon Beacons National Park

8.3

Yorkshire Dales National Park

8.6

Pembrokeshire Coast National Park

9.0

North York Moors National Park

9.2

The Broads Authority

9.6

Exmoor National Park

9.8

Dartmoor National Park

10.2

Peak District National Park

10.2

Lake District National Park

11.5

South Downs National Park

14.9

New Forest National Park

15.2

National Parks Average

11.7

Source: Lloyds Bank, Land Registry, ONS

* Weighted average by transactions

NOTES TO EDITORS: 

This Lloyds Bank National Parks Review tracks house price movements in 12 National Parks across England and Wales. Northumberland National Park is excluded from the analysis due to an insufficient number of sales. The review is based on data from the Land Registry and the Office for National Statistics (ONS).

* Northumberland National Park excluded from the analysis due to insufficient number of sales. National Parks within England and Wales.

** Where more than one county is involved, a weighted average of relevant counties is used.

House price data is from the Land Registry and all price figures refer to the arithmetic average of house prices. The data covers the January-June periods in 2007 and 2017. These prices are not standardised and therefore can be affected by changes in the sample from year to year.

The county house prices used in the release reflect the county or counties that the National Park covers. Average earnings figures are from the ONS's "Annual Survey of Hours and Earnings" (ASHE) and refer to the means for full-time employees in the relevant local authority.

National Parks are defined as large natural areas not materially altered by human activity where extractive resource uses are not allowed and whose purpose is to protect nature and scenic areas of national and international significance for scientific, educational and recreational use (Source: OECD)

For further information

 

 

"This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report.  Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. © Lloyds Bank plc all rights reserved 2017."

Buying a home in a national park will cost an extra £116,500