The 'Park Premium' In London
London’s parks are in a lot of cases the envy of the world…
Hyde Park…
Green Park…
Richmond Park…
Regent’s Park…
The list goes on and on!
However, is paying a premium to live near a park in London worth it?
Firstly, what exactly IS the premium that 1-bed, 2-bed or 3-bed London homebuyers pay to live near a park?
Let’s look at Hyde Park, which in a lot of people’s eyes is the most sought after park to have a view of, due to it’s location in the heart of London.
Research from Knight Frank has shown that if people buy a property that is facing Hyde Park and has direct views of the park, then they typically pay a 29% premium.
Knight Frank research has also shown that buyers pay around an 18% premium to simply be 150m away from “the world's most 'Instagrammed' green spaces”.
Is this premium worth it?
It depends on various factors…
1. If you are going to be buying a flat in Central London as your next home that already has outside space in the form of a roof terrace or a patio garden or indeed a garden, then you may not be willing to pay the premium that comes with living near a park such as Hyde Park.
2. However, if your Central London flat doesn't have any outside space in the form of a roof terrace or a patio garden or garden, then you may well want to live near to a park such as Hyde Park to have access to green outside space.
3. Do you live centrally, where green spaces already carry a premium?
In Central London, green spaces carry a premium because of the fact that you are in the heart of London, where there are generally large crowds of people and it is an incredibly busy city - therefore, having access to green space where you escape this is rare!
4. Do you live away from Central London where your general lifestyle isn’t as hectic?
“They typically pay a 29% premium.”
If you live away from Central London in an area such as Hampstead, Richmond or Highgate, which all offer more of a quiet, village type atmosphere, then green space may be slightly lower down on your agenda or wish list.
5. Do you already have access to a private garden outside of Central London?
When people move away from Central London and are looking to buy a new home, it is typically to:
a) Improve their lifestyle.
b) Get more for their money.
c) Have access to a private garden.
d) For Schooling.
e) All whilst retaining a good commute to work.
If you have access to a private garden away from Central London, however, big or small it may be, then some 1-bed, 2-bed or 3-bed buyers are less likely to be looking to live near a large park as they already feel that they live in more of a rural location, thereby making living near to a large park less of a must.
However, some buyers love the idea of still living near a large park that they can use on weekends…
It all depends on what each buyer is really after and whether:
1. They can afford the premium to live near a park in London.
2. They are willing to pay that premium.
Would you like to live near a park in London?
If so, what would your dream location be?