Breathtaking views on the doorstep are the dream of many a holiday homebuyer. So much so that they are willing to pay more than the average for the privilege, a new study by Lloyds Bank has revealed.
Property prices in the National Parks of England and Wales are sold for 58 per cent more than in the surrounding areas, according to new research. Homes in UK National Parks are increasingly out of reach for people living in the local area where average earning capacity has not increased sufficiently to make them affordable, even at today’s lower prices.
Meanwhile, having a second or holiday home in National Parks in the UK is a popular option amongst people looking to buy an idyllic getaway in the country. The main reason for this is that they are likely to hold their value by virtue of their privileged location. “The high quality of life associated with living in some of the country’s most beautiful areas attracts many homebuyers to our National Parks,” says Marc Page, Mortgages Director at Lloyds Bank.
“The disadvantage is that the resulting high property prices have made it very difficult for many of those living and working in such locations to afford to buy their own home. This situation has deteriorated in recent years as prices have risen more rapidly than earnings.”
Property values in National Parks have soared by an average of £91,265 or 36 per cent over the last 10 years – £10,000 more than the typical increase of £81,269 across England and Wales over the same period. The highest premiums are for properties in the New Forest with prices averaging £516,479.14 – 14 times the local average annual earnings. The South Downs, Exmoor, Dartmoor, the Lake District and the Peak District all average at over ten times the local average earnings. Snowdonia was identified as the most affordable National Park to buy in with prices of below £200,000, although even there, property still costs 6.5 times the typical local salary.