Report reveals homebuyers pay a premium to live in idyllic Yorkshire Dales

Malham Cove towards Malham Village.

Malham Cove towards Malham Village.

1
Have your say

A report has found that home buyers pay an extra £61,335 to live in the Yorkshire Dales.

The research was carried out by Halifax-based Lloyds Banking Group, which employs 6,000 people across Calderdale found that home buyers typically pay a premium of 31% to enjoy the idyllic setting of the Dales.

House prices in the National Parks of England and Wales are £125,796 or 58% higher on average than those in their county generally, with strong popularity among people looking snap up a second home or those wanting to retire.

The rapidly rising cost of a house located in a National Park is pushing it increasingly out of the reach of someone working in the local area as wages have remained relatively flat, the findings suggest.

With a typical price tag of £342,534, the average home in a National Park is now 11.3 times gross average annual earnings, increasing from a multiple of 10.3 times earnings in 2004.

Marc Page, mortgages director at Halifax, said: “The high quality of life associated with living in some of the country’s most beautiful areas attracts many home buyers to our National Parks.

“They are also increasingly popular with those purchasing a second property. These factors mean that homes in National Parks typically trade at a significant premium to properties in surrounding areas.

“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.”

The New Forest was found to command the highest price premium, with homes there typically costing £516,479, which is double the average house price in the surrounding area.

Homes in Snowdonia were found to have the smallest typical premium, typically costing £173,779, which is £7,728 higher than the average house price nearby.

Rising property values as the housing market generally has pulled itself into recovery mean people will have to stretch their finances even harder if they want to buy a dream home in National Park location.

Lloyds said that thanks to their growing popularity, property values in National Parks have typically surged by £91,265 or 36% over the last 10 years - which is £10,000 more than the typical increase of £81,269 seen across England and Wales over the period.

But the Yorkshire Dales have recorded the smallest price gains over the last decade, seeing increases of 17% and 18% respectively.

Land Registry house price records and Office for National Statistics (ONS) earnings figures were used for Lloyds’ research.

Here is the typical premium that someone pays to live in a National Park according to the Lloyds Bank research, with the average house price followed by the premium paid to live there compared with the county average in percentage and cash terms:

New Forest, £516,479, 101%, £259,066

Peak District, £307,573, 94%, £149,236

Lake District, £311,154, 84%, £142,493

South Downs, £460,099, 70%, £190,236

Pembrokeshire Coast, £222,792, 45%, £69,130

Exmoor, £308,153, 43%, £93,148

Dartmoor, £287,519, 32%, £70,440

Yorkshire Dales, £259,408, 31%, £61,335

The Broads Authority, £248,458, 24%, £47,558

Brecon Beacons, £206,162, 15%, £27,577

North York Moors, £238,952, 11%, £24,216

Snowdonia, £173,779, 5%, £7,728

National Parks Average, £342,534, 58%, £125,796