This follows a trend observed since the pandemic: increased demand for properties in rural areas
A property located within a national park produces a 25% premium over an otherwise identical property, research from Nationwide Building Society has suggested.
This premium is equivalent to around £67,600 in cash terms based on the current average UK house price of £270,452 in Q2 2022.
“National parks continue to be highly desirable areas in which to live, thanks to the beautiful countryside,” Andrew Harvey, senior economist at Nationwide Building Society, said. “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 today – 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.”
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Harvey said they had 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.
“There also continues to be evidence of a ‘fringe benefit’ for properties located close to national Parks,” he added. “Those within five kilometres of a national park command a 7% premium compared with those outside of this range.”
New Forest is reportedly the most expensive national park to live in, 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.
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Meanwhile, Nationwide also reported that properties in areas of outstanding natural beauty (AONBs) in England and Wales attract a 13% price premium over an otherwise identical property.
“The AONBs in England and Wales have been designated for conversation due to their significant landscape value,” Harvey said. “While 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. Around 37,000 people live in the Surrey Hills AONB, mostly in small villages and rural hamlets, such as Shere, Mickleham and Westhumble.
