The value of private outdoor space is one of the pandemic’s legacy trends that’s become permanently ingrained in the home buyer’s psyche.
Demand for homes with larger gardens and outside space has increased significantly over the past three years, as buyers place a greater value on the lifestyle and wellbeing elements of their surroundings. While larger homes with big gardens have always come at a premium, it’s now evident that buyers are also paying more for indoor space if it has a large garden attached.
Our most recent analysis of the relationship between garden size and house prices reveals that buyers are paying around £424,000 for an average 1,200 sq ft house (a typical three bedroom home) with a large garden, compared to £260,000 for one with the smallest sized garden.
Neighbourhoods in the top decile in terms of outside space have the highest average value at £353 psf. Whereas, for homes with the smallest outside space, that figure is almost two-fifths (-39 per cent) lower at £216.
But how much more you pay for a home with a large garden will depend on where you live – with the research revealing a disparity between rural and urban areas.
In urban markets – where larger outside space is much more of a rarity – the £psf for properties with the largest gardens (£481) is more than double that of those with the smallest (£216). Here buyers are paying 13 per cent more to enjoy those terraces, beds and borders. And, over the last three years in particular, there’s been tough competition to secure a property with these sizeable outdoor spaces as they have become a sought-after means of escaping the pressures of metropolitan living.
In rural areas, having a garden is more of an expectation, which means there is a less clear correlation between plot size and house prices. The premium for homes with the largest gardens here is smaller – 8.3 per cent – however, the discount for properties with the smallest outside space is more pronounced (-24 per cent vs -18 per cent in urban locations).
Where are the homes with the largest outside space?
Buyers searching for more outside space will find the largest gardens on Scottish islands, including Eilean Siar (989m2) and the Orkney Islands (832m2). While popular relocation hotspots Mid Suffolk (747m2), and West Devon (714m2) place within the top ten, too.
In London, competition for more outside space is hot, especially post-pandemic. Perhaps unsurprisingly, the top 10 boroughs with the highest average size of outdoor space are all located within outer London where larger homes with gardens are more readily available, with Bromley (328m2), Barnet (280m2) and Harrow (266m2) coming out top.
By comparison, the average size of private outdoor space in the central London boroughs of Westminster, and Kensington and Chelsea (famous for its annual display of horticultural prowess) average at below 100m2.
Savills is sponsoring a 264m2 show garden at this year’s RHS Chelsea Flower Show, showcasing ornamental and edible planting, and providing inspiration for ‘plot-to-plate’ alfresco dining. A home with a garden this size would ordinarily command a 34 per cent premium in this prime central London hotspot, while those with a balcony or terrace in Chelsea command a 9 per cent premium.
Whatever the size, from a window box or balcony to luxuriant lawns, Mark Gregory, designer of The Savills Garden, has tips for creating a haven for wildlife as well as people. Read more here.
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