Yahoo Finance Homes in national parks ‘£45,000 more expensive’ as house prices continue to soar
The amount of extra cash needed to buy a house located in a national park has increased as the coronavirus pandemic changed people’s preferences, according to the latest research by Nationwide.
Britain’s largest building society found that a house located within a national park attracted a 20-per-cent premium over otherwise identical properties, an increase from the premium identified in last year’s research, which stood at 19 per cent.
This is equivalent to about £45,000 more than a home elsewhere based on current average UK house prices, said Nationwide.
Houses within 5km (3 miles) of a national park also attracted a premium, though it was smaller, at 6 per cent.
The New Forest in Hampshire continued to top the UK’s most expensive national parks list, commanding average house prices of £475,000 in villages such as Ashurst, Lyndhurst and Brockenhurst.
The South Downs follows, with homes costing on average £368,000, and the Peak District is also highly popular, with homes costing £280,000 on average.
The coronavirus pandemic led to a behaviour shift among people looking to rent or buy a new place to live, with access to an outdoor space or garden becoming a top priority for people working from home.
According to Nationwide’s market research, nearly 30 per cent of people considering a move were doing so to access a garden or outdoor space more easily. Twenty-five per cent were looking to get away from urban life.
Overall, house prices grew 0.9 per cent month-on-month, which is equivalent to a 6.5 percent rise in annual house price growth as of November 2020 - the highest rate since January 2015.
Robert Gardner, Nationwide’s chief economist, said the latest data suggested that economic recovery had lost momentum before the second coronavirus lockdown came into effect in England.
“Labour market conditions also weakened with the unemployment rate rising to 4.8 per cent in the three months to September – still low by historic standards, but up from an average of 3.8 per cent in 2019,” he said, adding that the extension of the furlough scheme until March 2021 would help limit job losses.
“Despite these headwinds, housing market activity has remained robust. October saw property transactions rise to 105,600, the highest level since 2016, while mortgage approvals for house purchase in the same month were at their highest level since 2007 at 97,500.”
However, he warned that the outlook for the housing market remained “highly uncertain” and depends heavily on how the pandemic and measures to contain it evolve.
Housing market activity is likely to slow down in the coming quarters, said Mr Gardner, “perhaps sharply”, especially if the labour market weakens and once the stamp duty holiday expires at the end of March.
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