For those looking to escape the restrictions of living in an urban area during lockdowns, living in a national park looks attractive.
With millions of people subject to restrictions in urban areas during lockdown, according to research by Lloyds Bank home movers looking to escape pay a £155,948 premium to live in a national park.
Property prices in desirable national parks have increased by an average 7% or £29,609 to £426,595 compared to the average property value in the county of £370,647.
For remortgage buyers living in national parks higher prices could allow them a further advance on their mortgage to make home improvements, subject to strict planning rules in these areas.
On average buyers are paying 58% more for homes in national parks compared to properties in the surrounding area with the highest prices of £696,568 for homes in the New Forest, Hampshire.
Premiums rising for popular parks
More people working from home may think about escaping to the country where national parks offer open spaces and picturesque scenery, although they may not be affordable to first time buyers.
The table from Lloyds Bank shows the average prices in national parks and premium paid over similar houses in the county during 2020.
| National park | House prices | Premium |
|---|---|---|
| Lake District | £412,213 | 122% |
| Peak District | £409,452 | 109% |
| New Forest | £696,568 | 107% |
| South Downs | £644,483 | 83% |
| Pembrokeshire Coast | £277,204 | 55% |
| Exmoor | £343,897 | 31% |
| Yorkshire Dales | £282,414 | 23% |
| Dartmoor | £302,879 | 15% |
| The Broads Authority | £299,050 | 14% |
| North Yorkshire Moors | £297,445 | 14% |
| Brecon Beacons | £220,110 | 4% |
| Snowdonia | £197,439 | 0% |
The largest increase is for the New Forest where house prices have increased 14% or £83,205 from last year and has a premium of 122% over homes in the surrounding area.
Next is South Downs rising 12% or £70,930 in a year paying a premium of 83% with average property values of £644,483 and more affordable for buyers from regions such as London.
If you enjoy water sports the Lake District attracts the highest premium of 122% over home outside the national park with house prices rising 10% or £37,824 year-on-year and average values are now £412,21.
For older homeowners living in national parks these higher values offer the equity release buyer access to cash using a lifetime mortgage to improve the quality of life or make home and garden improvements.
There are strict rules for making changes to homes within a national park and buy-to-let investors can find better value in surrounding areas to maximise their rental income.
Homes in national parks have risen at an average 32% or £104,028 since 2010 compared to the average for England and Wales and in the last five years is up 22% or £77,368.
Some national parks getting cheaper
To enjoy the great outdoors of the Welsh mountains, you can find the cheapest properties in the Snowdonia National Park where the average values are £197,439, which are no different than other areas.
Property values in some national parks have decreased with The Broads Authority falling -25% or -£97,054 in a year although maintaining a premium of 14% over surrounding areas.
The next biggest fall is the Yorkshire Dales down -18% or -£61,496 in the year with a premium over outside areas of 23% or £52,824.
National park homes cost 12.4 times the average local earnings compared to the national average of 7.9 and the least affordable is the New Forest with house prices 16.7 times local salaries.
Snodonia national park has become more affordable in the last decade with house prices falling from 7.4 times average local income to 6.8 times this year.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.
