House Prices in the Most Picturesque Locations Rise by GBP 110,000 Over the Past Decade

    MANCHESTER, ENGLAND, June 17, 2012 /24-7PressRelease/ -- Homeowners in some of the most picturesque locations in England have seen the value of their property rise by more than GBP900 a month, on average, over the past ten years, according to new research by Lloyds TSB. The average house price in postal districts within the 32 Areas of Outstanding Natural Beauty (AONBs) in England surveyed have risen by 87% (GBP109,355) over the past decade from GBP125,860 in 2002 to GBP235,215 in 2012. This is equivalent to a monthly rise of GBP911.

Affordability in AONBs has deteriorated in past decade
The rise in the typical AONB property price since 2002, at 87%, was nearly three times the 32% increase in average earnings over the same period. As a consequence, home affordability in such locations has deteriorated over the past decade. The average AONB house price of GBP235,215 in 2012 is, on average, 7.0 times higher than average gross annual earnings. This is up from a multiple of 4.9 in 2002.

Solway Coast sees the biggest rise in house prices
Five AONBs have seen house prices double over the past decade. Solway Coast in Cumbria recorded the biggest increase, at 124.5%. This was marginally ahead of the Northumberland Coast, which saw the second biggest rise in house prices (123.8%), followed by the Kent Downs (115%) and Forest of Bowland in northern England (107%).

At the other end of the scale, Dedham Vale on the Suffolk-Essex border recorded the smallest increase (61%), followed by the North Wessex Downs (66%).

Surrey Hills is the most expensive AONB
Surrey Hills is the most expensive AONB in England with an average house price of GBP407,568, followed by High Weald (GBP329,441) and Kent Downs (GBP320,090). Forest of Bowland (GBP212,301) is the most expensive AONB outside southern England. In contrast, Lincolnshire Wolds (GBP128,608) and Cannock Chase (GBP136,774) are the only two ANOBs in the survey with an average house price below GBP150,000.

AONBs attract a house price premium of nearly GBP15,000
On average, homebuyers are required to part with an extra GBP14,951 (9%) to live in an English AONB. This is 87% higher than the average premium of GBP8,009 in 2002.

Two-thirds of AONBs have higher house prices than the region average
66% of AONBs have a higher average house price than the regions that they are located within. Surrey Hills in the south east has the largest premium with houses trading at an average of 50% above the average house price in the region. This is followed by Forest of Bowland and Shropshire Hills where house prices trade at a premium of 38%.

Suren Thiru, Housing Economist, Lloyds TSB said: "The value of homes within areas of outstanding natural beauty has risen substantially over the past decade. The relatively high property values in many of these locations reflect the quality of life benefits associated with living in some of our most idyllic beauty spots. However, the fact that property prices have typically risen considerably faster than average earnings has created significant affordability difficulties for many of those living and working in such locations."

Contacts:

Lloyds TSB customer services
Email: [email protected]
Telephone: 0845 300 0000
Website: http://www.lloydstsb.com

Editors notes:

This report tracks house price movements in the postal districts (http://www.naturalengland.org.uk/ourwork/conservation/designatedareas/aonb/solway.aspx) of 32 Areas of Outstanding Natural Beauty (AONB) in England (Isles of Scilly and Isle of Wight have been excluded due to unavailability of data). Wye Valley is partly located in Wales.

An Area of Outstanding Natural Beauty (AONB) is defined as a precious landscape whose distinctive character and natural beauty are so outstanding that it is in the nation's interest to safeguard them.

Definitions and locations have been sourced from the National Association for AONB: http://www.aonb.org.uk/wba/naaonb/naaonbpreview.nsf/Web%20Default%20Frameset?OpenFrameSet&Frame=Main&Src=%2Fwba%2Fnaaonb%2Fnaaonbpreview.nsf%2F%24LU.WebHomePage%2F%24first!OpenDocument%26AutoFramed

House price data is from the Land Registry and all price figures refer to the arithmetic average of house prices. The latest data refers to the average for the 12 months to March. These prices are not standardised and therefore can be affected by changes in the sample from year to year.

Crown copyright material is reproduced with the permission of Land Registry under delegated authority from the Controller of HMSO.

Viewers of this Information are granted permission to access this Crown copyright material and to download it onto electronic, magnetic, optical or similar storage media provided that such activities are for private research, study or in-house use only. Any other use of the material requires the formal written permission of Land Registry which can be requested from us, and is subject to an additional licence and associated charge.

"This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. Lloyds TSB Bank plc all rights reserved 2012"

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