Are Lake District Property Prices Recession Proof? (March 2020)
- New developments are limited due to the area being a National Park, with the majority of new builds having local occupancy clauses, meaning demand, particularly for holiday cottages outstrips supply.
- The increasing trend for remote working, is enabling urban workers to relocate to the countryside. For those who need to travel to London for work, the train journey from Oxenholme to Euston is only 2 hours 38 minutes.
- The Lake District’s new World Heritage status has put the area on the global map, generating more international tourism and boosting property prices.
- On a domestic level, the movement towards ‘staycations’ from environmentally conscious Brits has also boosted tourist numbers, having a positive effect on house prices. This trend may strengthen once Brexit finally lands. One other domestic pull is Cumbria’s foodie status, with the area now having more Michelin starred restaurants than anywhere else in the UK outside of London.
- Lake District house prices have fallen before, they did so for 3 consecutive months during the 2008 recession. This was less pronounced than in other areas of the country though with house prices in Cornwall dropping for 9 consecutive months as one example (Telegraph, 2017).
- House prices inside the Lake District National Park are according to Lloyds Bank (2018) more than double those in the surrounding areas. It is therefore possible that Lake District prices are closer to their ceiling than those in other areas.