National Parks attract £90,000 house price premium
Homebuyers must pay nearly £90,000 extra to reside in some of the nation's most iconic beauty spots, according to new research from Lloyds TSB. House prices in the National Parks of England and Wales in 2012 are, on average, £87,968 (45%) higher than their county average. This premium is £31,342 (or 55%) higher than in 2002 when it was £56,626.
Homes in the Peak District command the highest price premium
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 (94%) and the Lake District (70%). Homes in Snowdonia command the smallest premium, with property prices just 6% above the county average.
House prices in National Parks up by £170,000 over the past decade…
The average house price in National Parks across England and Wales has risen by £170,335 – 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 (109%) and the Pembrokeshire Coast (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%.
...resulting in a marked deterioration in home affordability
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.
New Forest is the least affordable National Park
The New Forest is the least affordable National Park with an average house price (£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 (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.
Suren Thiru, housing economist at Lloyds TSB, said:
"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."
"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."