Urban homes near public parks, gardens and playing fields are more expensive adding 1.1% premium to the value of your property.
The latest research from the Office of National Statistics (ONS) reveals the benefit of urban green spaces with property values 1.1% or £2,500 higher in 2016 if you live near public parks, gardens and playing fields.
For first time buyers and home movers looking for a higher quality of life within 100 metres of your doorstep you will pay a premium compared to living 500 metres away.
Apart from homes near green spaces, having views over green spaces or water such as rivers, canals, lakes or sea also raised prices for urban houses and flats by an extra 1.8% or £4,600.
Higher premium with more green space
The size of the green space in square metres also made a difference to the premium with home buyers paying 2.4% more for 100,000 sqm on your doorstep compared to 1.7% for 25,000 sqm.
The following table from the ONS shows the size in square metres of the green spaces, distance from the property and premium paid in 2016.
| Distance | 25,000m² | 75,000m² |
100,000m² |
|---|---|---|---|
| 0m | 1.7% | 1.9% | 2.4% |
| 100m | 0.7% | 1.0% | 1.4% |
| 200m | 0.5% | 0.8% | 1.2% |
| 300m | 0.4% | 0.6% | 1.0% |
| 400m | 0.3% | 0.5% | 0.9% |
| 500m | 0.2% | 0.4% | 0.8% |
The ONS used the Ordnance Survey Open Greenspace data that includes public parks or gardens, play spaces, playing fields, sports facilities, golf courses, allotments or community growing spaces, and religious grounds and cemeteries.
The data excludes woodlands, heaths and other open spaces that people might use for recreation.
For buy-to-let landlords purchasing properties near to green spaces or views of water could mean improved rental yields from tenants.
Improved property values would also allow remortgage buyers living near green spaces would allow them to release capital to improve their home such as adding an extension or new kitchen.
Greatest premium paid for detached houses
For properties within 100m of a green space the highest premium of 1.9% was paid for detached houses but flats are only 0.6% more expensive than those further away.
The following table from the ONS shows the type of property and premium paid in 2016 for homes within 100 metres of green spaces.
| Property type | Premium |
|---|---|
| Detached house | 1.9% |
| Semi-detached | 1.6% |
| Bungalow | 1.5% |
| Terraced | 1.4% |
| Flat | 0.6% |
Home buyers value being close to green spaces as they can use them for leisure activities like dog walking, sport and exercise.
The average contribution of green spaces and blue spaces such as rivers, canals, lakes or sea to property prices is £2,813 which is about 1.2% of the average property price.
Premiums for homes close to green spaces and water can benefit older homeowners allowing the equity release mortgage buyer accessing cash to maintain your lifestyle, holidays or home improvements.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth to consolidate debt or gifting to a family member.
Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator. Start with a free mortgage quote or call us and we can take your details.
At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
