Properties in the New Forest are the most expensive in national parks and more than double the cost of the county average.
Homeowners that want to enjoy the outdoors on their doorstep and live in a national park pay a premium of 47% or an extra £121,383 according to research from Lloyds Bank.
For aspiring first time buyers or home movers the average house price in a national park is £379,437 which is significantly higher than the county price of £289,336.
Prices for properties in the new Forest leaps to £661,957 more than double the county average and home buyers pay a 107% premium or £342,830 more for the privilege.
Local buyers are locked out
The cost of homes in national parks is 11.6 times higher than local annual earnings with the New Forest at 15.9 times the least affordable compared to the national average of 7.8 times.
The following table from the Lloyds Bank shows the average price and premium paid compared to other houses for national park homes in the county during 2018.
| National park | House Price | Premium |
|---|---|---|
| New Forest | £661,957 | 107% |
| Lake District | £329,882 | 81% |
| Peak District | £329,529 | 75% |
| South Downs | £551,877 | 65% |
| Pembrokeshire Coast | £259,795 | 53% |
| Exmoor | £330,975 | 32% |
| Yorkshire Dales | £293,322 | 31% |
| Brecon Beacons | £244,099 | 25% |
| The Broads Authority | £316,383 | 24% |
| Dartmoor | £300,598 | 19% |
| North York Moors | £270,724 | 8% |
| Snowdonia | £189,616 | 2% |
All twelve national parks surveyed have higher house prices than the average for their county with the New Forest on a premium of 107%, Lake District with 81% and Peak District third with 65%.
For home movers wanting to trade up and live in a national park, they may find their next property is more expensive which means they need a larger deposit or mortgage.
Andrew Mason, mortgage products director of Lloyds Bank said, national parks offer a unique opportunity to live in some of the most desirable parts of the country.
With such a significant gap between local earnings and property prices, people who want to live and work locally may face a considerable challenge to buy their own home, says Mr Mason.
Long term shows upward trend
There has been a mixed year for properties in national parks over the last year with prices rising only 1% or £5,545.
Homes prices in the New Forest are up 9% or £55,329 although other areas are lower such as Peak District down -7% or -£24,683 with Dartmoor, North York Moors and Lake District also lower.
One advantage of higher house prices in national parks for existing homeowners is remortgage buyers can now release capital for home improvements such as new kitchen, bathroom or extension.
Changes to homes within the national parks often come with strict rules designed to protect their beauty and heritage which could limit the changes you make to your home.
With higher house prices strict rules in national parks, buy-to-let landlords will look to other areas for affordable properties to help improve rental yields.
In the long term house prices over the last ten year in national parks are up 17% or £56,063 to £379,437 this year with South Downs rising 36% or £146,264 over the decade.
The rise in house prices allows the older equity release mortgage buyers in national parks allows them to access the wealth in their property using this to improve your quality of life or reduce inheritance tax owed by your beneficiaries.
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 consolidate debt, for home improvements or holidays of a lifetime.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release mortgage calculator, property value tracker chart and mortgage costs calculator.
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.
