NATIONWIDE says homes can attract a 23% premium if they are located within a National Park making it “even harder” for first-time buyers to afford their first properties.
UK annual house price growth was little changed in August at 1.6%, compared with 1.4% in July, while prices were up 0.2% in month-on-month terms, after taking account of seasonal factors, Nationwide’s House Price Index showed.
Nationwide’s analysis also indicates that a home being located within a National Park attracts a 24% premium compared to a similar property elsewhere. This is around £66,500 in cash terms based on the UK average house price in Q2 2026 (£278,784).
There is also a “fringe benefit” for properties located close to National Parks. Those within 5km (around 3 miles) of a National Park command a 6% premium compared with those outside this range.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “National Parks are highly desirable areas to live in thanks to the beautiful countryside. Those living in the parks are ideally placed to make the most of the great outdoors and take advantage of a range of activities and amenities. Development is also controlled with limited new housing construction, which may also help to explain why house prices tend to be relatively high.”
He added: “Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop. Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices and market interest rates.
“Market expectations of the future path of Bank Rate have been volatile. While the latest energy price shock poses inflation risks, there have been encouraging signs that it is not feeding through to underlying price pressures. Indeed, private sector wage growth has eased further in recent months, which should give policymakers breathing space to assess the extent to which tighter policy is necessary to ensure inflation returns sustainably to target.
“Underlying affordability is improving, as house price growth remains well below earnings growth. although some of these gains have been offset by higher mortgage rates. Nevertheless, this suggests that activity should regain momentum in the quarters ahead providing the energy shock wanes and confidence returns, especially if market interest rates fall back towards pre-conflict levels.”
Even harder
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said people want to live in National Parks.
He added: “A 24% premium shows just how much buyers value location and lifestyle, but there is another side to these figures. Part of that premium is likely to reflect the limited supply of homes in areas where development is deliberately restricted.
“Protecting National Parks is clearly important, but it also means buyers wanting to live in these areas may have to pay significantly more for the privilege. For those priced out, Nationwide’s 6% premium within 5km shows that living just outside the boundary can potentially offer some of the lifestyle benefits without paying the full National Park premium.”
Tracey Dixon, Buy-to-Let Mortgage Specialist & Owner at Cardiff-based Pure Mortgage and Protection, said people wanting to live in these parks need to pay a premium.
She added: “Working in and around Abergavenny, the appeal of living close to Bannau Brycheiniog is easy to understand. Buyers are not simply purchasing a property; they are paying for the scenery, outdoor lifestyle and access to countryside, while still wanting practical links to nearby towns and cities.
“That desirability can support property values, but a headline premium does not mean every home within or near a National Park will automatically achieve a higher price. Condition, exact location, transport links, broadband and local amenities still matter, and buyers must be able to afford the larger mortgage that often accompanies the postcode.
“Buyers may fall in love with the view, but the mortgage still has to work when the scenery is taken out of the equation. For local first-time buyers in particular, the premium can make an already difficult step onto the housing ladder even harder, sometimes pushing them towards neighbouring areas where their deposit and income will stretch further.”
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said it’s “basic supply and demand”.
He added: “Buying near or within national parks will inevitably add a premium to prices, especially as townies move away from housing estates and into areas with more space and less noise, but that premium comes at a cost that a growing number are becoming happy to pay.
“It’s a basic supply-and-demand situation. Developments in these exclusive areas are limited and, as such, scarcity pushes up prices. But for those moving from family 4-bed houses in the South East to a smaller 2 or 3-bed as the children eventually leave home, this becomes more about lifestyle than substance.”
Premium
Toby Quanstrom, Director at Quanstrom Financial, said the overall figures show a steady property market.
He added: “August’s property market has been steady, with buyers slowly returning and sellers realising they can’t sell for 2021 prices. Stock sits at its highest August level since 2014, which is why asking prices saw their biggest August drop since 2018, even as buyer demand rose 5% after the change of Prime Minister. In our Eastbourne office, the homes going under offer are the sensibly priced ones.
“The rate picture explains why vendors must price sensibly – the base rate has been held at 3.75%, yet fixed rates have drifted upwards all year, so anyone waiting for cheaper money has gone backwards. September should pick up, whilst the holiday lull ends, remortgage maturities spike, and with the Bank’s next decision on 17 September, buyers may finally accept that today’s deal can beat tomorrow’s promise.”
Rupert Collingwood, Founder at The London Broker, said people are looking forward to the Budget next month.
He added: “Nationwide’s subdued results echo what we are seeing on the ground. There’s subdued appetite from buyers at all levels to engage with the market due uncertain interest rates, the usual summer lull and the arrival of a new PM in Number 10.
“It is difficult to see much changing in the coming months, as buyers and vendors keep their powder dry and await the Budget signposted for the end of October and the economic and political gossip which will inevitably accompany it. Vendors hoping to sell before Christmas should act now to make sure their home stands out from the local crowd in order to take advantage of the return to business as usual following the summer holidays.”
Harry Goodliffe, Director at Winchester-based HTG Mortgages, said buyers are still cautious.
He added: “House prices are moving at a fraction of the pace of average pay growth, which means the gap between wages and property values is quietly narrowing without anyone watching their equity fall through the floor.
“Energy costs and global events are the drag, keeping confidence low and buyers cautious for months on end. Nothing changes until rates ease and people feel steadier about their finances, so expect this same slow, low-drama market to carry on right through autumn.”
Richard Davidson, Mortgage Advisor at onlinemortgageadvisor.co.uk, pointed out that mortgages get cheaper if prices don’t increase.
He added: “What’s interesting isn’t the headline growth figure, it’s what steady prices are doing to loan to value. When your mortgage balance has fallen and the property has held its value rather than dropped, plenty of homeowners are quietly moving into a cheaper rate bracket.
“I’ve had remortgage clients move from 75% to 60% loan to value purely because prices haven’t fallen, and that alone knocks a real chunk off their new rate. Lenders are loosening affordability too. Nationwide’s Helping Hand stretches to six times income for first time buyers, and newer names like April Mortgages go even further.
“So even in a subdued market, some buyers can borrow more than a year ago. I think uncertainty is holding the market back more than affordability, whether that’s the Budget, rates or global events. Get some stability on both and I’d expect pent up demand to come through fast, though predicting when is a mug’s game. For now it’s about being ready to move, not waiting for a green light.”
