'Green premium' on homes near parks

06/10/11

By Leo Stevens

The demand for homes close to greenery means that properties near public parks typically have an asking price of £21,000 more than those which are not, a report has revealed.

ING Direct uncovered this so-called 'green premium' while carrying out a poll of 2,000 adults, which also revealed that the price difference was higher in cities with less public space.

Its report went on to conclude that the price disparity has occurred because open spaces are becoming a scarce commodity as local councils face increased pressure to sell land for redevelopment.

ING Direct mortgage director Julian Hartley said: "House-hunters are not only willing to pay more for a house near a public green space; many understand that this will be a significant premium and are factoring this into their savings plans.

"As planning regulations are relaxed and more local authorities sell off green areas for housing development, we're likely to see the green premium increase significantly."