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New analysis from Nationwide Building Society suggests that the Government’s plan to create new national parks in England is likely to provide a boost to house prices in those areas of the country.
According to the Society’s research of house prices in and around existing national parks, living in one attracts a 20% house price premium over an otherwise identical property elsewhere. This is higher (by 1%) than in August 2019 when the Society last produced its National Parks report. In cash terms, this equates to an extra £45,000 based on the average UK house price1.
The boost to house prices isn’t just confined to the national park area. In fact, those living within a 5km (c.3miles) radius of a national park see an average house price premium of 6% (£13,000 cash equivalent).
The table below shows average house prices and the indicative premium in a selection of national parks. Although the Government has yet to announce which areas of England will be designated a national park, it is likely to enhance property prices for homeowners in these areas.
|National Park||Average house price||Indicative premium|
Note: The indicative premium is based on the overall premium as it not possible to estimate an individual premium for each park.
Andrew Harvey, Nationwide’s Senior Economist, said: “National parks are often seen as highly desirable places and indeed creating new ones will undoubtedly benefit the wider environment by helping to preserve some of the country’s most iconic landscapes and the accompanying wildlife.
“However, creating new national parks could also come with a price for an increasing number of homebuyers and sellers as our latest analysis suggests that houses in national parks attract a £45,000 premium over similar property elsewhere in the country.”
Nationwide’s September/Q3 House Price Index Amount is based on the Q3 UK average house price: £224,337
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