Research by Henry Dannell, the leading specialist in bespoke mortgage solutions, has found that homes surrounding London’s royal parks command an average house price premium of 30% when compared to the wider boroughs they are located within.
Henry Dannell analysed current property market values in postcodes with access to one the capital’s royal parks before looking at how this cost differed to that of the wider borough.
The research shows that on average, royal park house prices sit just shy of £1.2m, while the average property value across their wider respective boroughs is £900,000. This means that a royal park side property will set you back an additional £270,000; a premium of 30%.
The Royal park that commands the largest premium is Green Park, situated right next to Buckingham Palace, it straddles both the W1A and W1J postcodes.
The average property price across these postcodes is a hefty £1.7m while the average cost of buying within the wider borough of Westminster is £979,000. Green Park’s property price premium is, therefore, an impressive 77%, or £753,000.
Hyde Park is also located in Westminster and sits across four different postcode areas – W1K, W2, SW1X and SW7. The average cost of a property within these postcodes is currently £1.5m. This means a Hyde Park property will cost you 60% more compared to the wider borough, a £586,000 mark up.
Two more Westminster-based Royal parks come next. St. James’s Park and Victoria Tower Gardens, both of which are home to an average property value of over £1.4m, 46% more than the wider borough average.
Greenwich Park’s flies the royal park flag outside of prime central London, with surrounding properties commanding a 32% premium, followed by Kensington Gardens (31%), Regent’s Park (8%) and Brompton Cemetery in Richmond (2%),
However, there are two royal parks with postcodes that boast a lower house price than the wider borough. With house prices averaging £745,000, Richmond Park comes in -2% below the wider cost of buying in Richmond.
By far the most affordable Royal park to live near is Bushy Park, also in the borough of Richmond, with surrounding homes commanding £615,000 on average, 19% more affordable.
Director of Henry Dannell, Geoff Garrett, commented: “Much has been made about the exodus of homebuyers leaving London for greener pastures in quaint countryside locations, but the capital boasts some outstanding green spaces in its own right and its royal parks form a significant portion of this.
Unfortunately, a royal park adjacent property is likely to cost you a fair bit more and this price premium is only likely to grow in the wake of pandemic lockdown restrictions.
The fact that many of London’s royal parks are also located in prime locations means that not only will you pay a premium, but the cost of buying is already extremely high.”
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