Park Premiums: The London Parks Adding The Most Value To Nearby Properties
Whether it’s to have picnics in the summer or make snowmen during winter, who doesn’t love spending time outdoors at local parks? If you’re looking to move close to plenty of green spaces, we’ve talked before about the London boroughs offering the most green spaces — but do parks increase property values in these locations?
We used House Price Index data to find out the average prices of properties in the same postcodes as some of the capital’s most popular parks. By comparing this to the average cost of other homes in the same borough, we discover how much parks increase property values — a.k.a. their ‘park premiums’!
Sharing the same postcode as a London park can boost a property’s value by millions
Properties in the same postcode as a London park can cost millions more compared to other homes in the same borough, with an average price of £1.1 million more:
The Biggest Park Premiums In London
Parks in Westminster and Kensington and Chelsea are the most expensive to live near, costing as much as £5.7 million more than other homes in the same borough.
#1) St James’ Park and Green Park
Topping this list in joint first place are St James’ Park and Green Park, which are across the road from one another. Properties sharing the coveted SW1A postcode cost an average of £5.7 million more than the average Westminster home. To be fair, they do neighbour the Queen at Buckingham Palace!
#2) Holland Park
Kensington and Chelsea is known as an affluent borough, with Holland Park being perhaps the most sought-after location in the area. Holland Park property costs an average of £2.2 million more than the Kensington and Chelsea average.
#3) Victoria Tower Gardens
Victoria Tower Gardens might be smaller than other parks on the list, but it still has so many benefits to shout about. Overlooking the River Thames and adjacent to the Houses of Parliament, residents pay an average of £1.2 million extra to live in this convenient and scenic location.
Other notable areas include Camden, where Hampstead Heath and Primrose Hill cost an extra £666,000 to £784,000 to live near, and Richmond Park, which, as the largest park in Greater London, costs an additional £427,000 to live near.
Living near green spaces costs more across the UK
It’s not just London that has park premiums. Across the UK, buyers are paying more to live near green spaces.
An ONS analysis has revealed that urban homes near green spaces are valued at an average of £2,500 more than homes further away from parks.
Meanwhile, living in one of the UK’s beautiful national parks costs an average of £121,383 more. Topping the list of expensive national parks is the New Forest, which costs around £300,000 extra to live in.
Why is it important for us to have green spaces in cities?
There are plenty of reasons people pay more to live close to parks and nature.
Parents with young children may be looking for convenient access to parks and spots for picnics and games with little ones.
Dog owners can easily enjoy daily walks in green surroundings rather than urban streets.
During the summer, parks are a free, convenient and refreshing meet up space for socialising with friends over a barbeque.
Studies show living near a park can be good for our physical and mental health too. Green spaces in cities provide space to exercise, and we improve our mental wellbeing by being around nature. It’s even linked to improved memory, attention span, creativity and more.
How do I find a property near green space that’s within my budget?
Nick Lieb, Head of Operations at Share to Buy, comments: ‘Owning a property near coveted green space in London often comes with a hefty price premium, meaning that most first time buyers are priced out of their preferred areas, unable to afford sky-high deposits on the open market.
A lifeline for house-hunters who want to put down roots near open green space in the capital, Shared Ownership allows eligible buyers to purchase a share in a property, usually between 25% – 75%, paying a mortgage on the portion they own and a subsidised rent on the remainder. The scheme offers an alternative route onto the property ladder in locations where first time buyers might otherwise struggle, with purchasers only needing to raise a deposit on the share they are purchasing – meaning that deposits for Shared Ownership homes are often significantly lower than buying outright.’
If you’re set on living near parks and nature and are worried about paying a park premium, don’t worry! Shared Ownership is an excellent option for those looking for affordable ways to get on the housing ladder in sought-after locations. Learn more about Shared Ownership or browse our Shared Ownership property listings today.
Average prices of London postcodes sourced via the land registry and is based on property sales between 1st January 2020 and 16th July 2021.
Average property prices of each borough sourced via the Office of National Statistics House Price Index data.
Full data set:
|Park||Postcode||Average Property Price for Specific Postcode||Borough||Average Property Price of Borough||Park Premium|
|St James’ Park and Green Park||SW1A 2BJ||£6,648,000||Westminster||£975,000||£5,673,000|
|Holland Park||W8 6LU||£3,370,000||Kensington and Chelsea||£1,209,000||£2,161,000|
|Victoria Tower Gardens||SW1P 3JA||£2,211,000||Westminster||£975,000||£1,236,000|
|Hyde Park||W2 2UH||£2,009,000||Kensington and Chelsea||£1,209,000||£800,000|
|Hampstead Heath||NW3 1TH||£1,619,000||Camden||£835,000||£784,000|
|Primrose Hill||NW1 4NR||£1,501,000||Camden||£835,000||£666,000|
|Regent’s Park||NW1 4NR||£1,501,000||Westminster||£975,000||£526,000|
|Richmond Park||TW10 5HS||£1,151,000||Richmond upon Thames||£724,000||£427,000|
|Brockwell Park||SE24 9BJ||£885,000||Lambeth||£543,000||£342,000|
|Ealing Common||W5 3PB||£838,000||Ealing||£509,000||£329,000|
|Battersea Park||SW11 4NJ||£901,000||Wandsworth||£625,000||£276,000|
|Greenwich Park||SE10 8QY||£613,000||Greenwich||£400,000||£213,000|
|Victoria Park||E3 5TB||£671,000||Tower Hamlets||£474,000||£197,000|
|Clissold Park||EN16 7AY||£714,000||Hackney||£553,000||£161,000|
|Alexandra Park||N22 7AY||£671,000||Haringey||£564,000||£107,000|
|Crystal Palace Park||SE19 2GA||£494,000||Bromley||£486,000||£8,000|