UK house prices have risen at the fastest rate in nearly six years, with properties in national parks attracting a higher premium, according to Britain’s largest construction company.
The average price of a house rose 0.9% to £ 229,721 in November from October, taking the annual growth rate to 6.5% from 5.8% – the highest since January 2015, a declared Nationwide.
The lender’s research indicates that nearly 30% of people considering a move did so because they wanted a garden or be near parks and other outdoor spaces in the wake of the Covid-19 pandemic, and 25% were looking to get away from the hustle and bustle of city life.
A property in a national park attracts a 20% premium on an otherwise identical property, making it £ 45,000 more expensive. This is an increase from the 19% premium recorded last year and Nationwide said the full effect of the pandemic had not been fully captured. Properties within 3 miles of a national park are also more expensive and have a 6% premium.
The New Forest is the most expensive national park to live in, with an average price of £ 475,000 in villages like Ashurst, Lyndhurst and Brockenhurst. Properties in the New Forest command an average premium of £ 95,000 compared to similar homes elsewhere.
The South Downs, which encompasses a number of towns in Hampshire and Sussex such as Petersfield and Midhurst, are also popular, with an average house price of £ 368,000, and have the highest population of any national park, at 117,900.
Andrew Harvey, Senior Economist at Nationwide, said there were a number of advantages to living in or near national parks: “Those who live in parks can make the most of the great outdoors with a range of options. activities at their doorstep. Development is also controlled, with limited construction of new homes, which also helps to explain why prices tend to be relatively high. ”
In recent months the UK housing market as a whole has been booming, with demand boosted by a temporary holiday from stamp duty on properties up to £ 500,000. Mortgage approvals for buying a home were at their highest level since 2007 in October, at 97,500, according to the latest data from the Bank of England.
The last housing market recovery in November came despite a weakening economy, but Nationwide warned the market would slow soon.
Robert Gardner, Nationwide’s chief economist, said: “The data suggests that the economic recovery had lost momentum even before the latest lockdown took effect. Economic growth slowed sharply, from 6.3% in July to 2.2% in August and 1.1% in September… The rise in infection rates and the tightening of social restrictions have resulted in a new impact of growth in October and November.
“Housing market activity is expected to slow over the next few quarters, perhaps abruptly, if the labor market weakens as most analysts predict, particularly once the stamp duty holiday expires. March.
Unemployment is expected to rise to 7.5% next year, from 4.8% currently. That would mean 2.6 million people unemployed by the middle of the year, after the leave ends and companies are struggling to stay afloat or retain staff.