Creation of new national parks set to boost local house prices
The Government’s plan to create new national parks in England is likely to increase house prices in those areas of the country, according to Nationwide.
The lender said that living in a national park currently attracts a 20 per cent house price premium over an otherwise identical property elsewhere. In cash terms, this equates to an extra £45,000 based on the average UK house price.
The boost to house prices isn’t just confined to the national park area. In fact, those living within a 5km radius of a national park see an average house price premium of 6% (a £13,000 cash equivalent).
The Government has yet to announce which areas of England will be designated a national park but wherever they are, it’s likely to enhance property prices for homeowners in those areas.
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.”