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National Parks produce 18% price premium

From Property Talk Live on April 7, 2014

Households can expect an 18% premium if their property is situated within a National Park says a special report from Nationwide.

Even those living within 5km of a National Park can look forward to an 8% premium for their home.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“Around 190,000 households in Great Britain are located within the boundaries of National Parks, and our research suggests that this factor alone attracts a significant price premium. Indeed, a property located within a National Park attracts an 18% price premium over an otherwise identical property. This is around £31,600 in cash terms based on the current average house price.

“Moreover, the premium is not limited entirely to properties located within the boundaries of the National Park. There is also evidence of a ‘fringe benefit’ for properties located just outside the boundaries of National Parks. Properties within 5km (c3 miles) of a National Park command an 8% premium to those outside of this range.

“National Parks are highly desirable areas to live thanks to the beautiful countryside. Development is also strictly controlled, with very little in the way of new housing construction, which also helps to explain why prices are relatively high.

“For the main National Parks, we have estimated the population served (defined as those living within the park and within 25km (c15 miles) of its boundaries) and average house price. The table below (ordered by average house price) also shows an indicative premium for each park (note, this is based on the overall premium as it is not possible to estimate an individual premium for each park).

“The Peak District serves the highest number of people, with around 5.9 million living within 25km of its boundary. Its central location makes it accessible from major population centres such as Derby, Sheffield and Manchester.

“The South Downs National Park, England’s newest National Park, which spans 1,624km² across Hampshire and Sussex, contains the highest number of households (around 47,000). The park includes a number of towns situated in the western Weald, including Petersfield, Liss, Midhurst and Petworth.

“The Cairngorms is the largest National Park by land area, but is located within a very sparsely populated part of Scotland. Loch Lomond and the Trossachs are closest to major cities such as Glasgow and Edinburgh, with 1.1 million people within 25km.

“National Parks cover 20% of the land area in Wales, the highest proportion of the home nations. The largest of these is Snowdonia, covering 2,176km². The most populous however is the Brecon Beacons, with 1.8 million living within 25km.”

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Source: Property Talk Live