New Areas of Outstanding Natural Beauty will come at a cost

With the pandemic fuelling people’s desire for space and greenery, living in an AONB in England and Wales comes at a price.

The escape to the country trend has driven price growth to levels not seen since before the global financial crisis in the prime regional market, and following a record number of exchanges ahead of June’s stamp duty holiday deadline, country property is in demand and those in AONBs are no exception.

An analysis of sales data shows that the price of a detached house in an AONBs is on average 32.7% higher than a detached property located within 5km of the boundary.

It comes as the government considers designating the Yorkshire Wolds and Cheshire Sandstone Ridge as AONBs, as well as extending the Surrey Hills and Chilterns AONBs.

Our analysis shows that detached houses within the existing Surrey Hills AONB cost on average £1,010,681, which is 32.4% more than detached properties located within 5km of the boundary.

In the Chilterns the average premium buyers can expect to pay is 23.5% with the average price £841,563.

Within the newly proposed areas, a detached house inside the Cheshire Sandstone Ridge AONB is on average £474,598, which is 34.2% more than detached house 5km outside of the suggested boundary.

In the Yorkshire Wolds AONB the premium is lower, with prices 11.9% more on average for detached properties located within it compared to those 5km from the proposed boundary. The average price in the Yorkshire Wolds AONB is £332,930.

“One of the enduring drivers behind the residential property market’s strong performance since the pandemic has been people’s desire for more space and greenery. There are few places that offer more of both than a home in an Area of Outstanding Natural Beauty, but with high demand and relatively limited supply you can expect to pay a premium for the lifestyle,” said Chris Druce, senior research analyst at Knight Frank.

Largest premiums

The largest single price premium can be found in the Gower, which was the first AONB to be created in 1956, where a detached property within costs on average 79% more than a detached house located 5km outside of the boundary.

Second is the Norfolk Coast, where a detached house within costs 70.1% more and third is South Devon, where a detached house costs on average 63.2% more than one 5km outside the boundary.

The wider adoption of home working due to the Covid-19 pandemic has led to prospective buyers looking beyond London and other major cities, extending their search areas and considering locations that were previously considered too far outside the commuter belt. This has benefitted property markets in more remote areas.

Knight Frank’s latest Sentiment survey found more than half (54%) of survey respondents said they planned to work from home more frequently than they did before the pandemic. More space or a larger house was more important for 42% of people than it had been before the pandemic too, compared with 12% that said it was less so.