London’s green spaces and their impact on property values

Every year, as spring approaches London, there’s a sense of cheer as residents welcome the blossoming season by spending time at either one or more of the 3,000 parks the city has. Public parks and green spaces have been the bedrock of urban planning in London for centuries. With almost 50% of the UK capital a green haven and 20% comprising public parks, the property market has recently seen a surge in demand for homes near a park.

Although homes near the Royal Parks in prime Inner London command the highest premiums, homebuyers and investors pay an average of up to nearly 50% to live in proximity or overlook a garden in the city.

The relationship between green spaces & property values

Given the option of choosing to live in a concrete neighbourhood or near one of London’s beautiful parks, the answer is a no-brainer. Living near a green zone, be it a large park or a quaint garden square, offers residents an opportunity to enjoy the outdoors close to their doorstep. In an urban metropolis, where owning a property with a private garden is limited and may seem unaffordable, leveraging the existing and protected green spaces is a prudent strategy for landlords and property investors.

So, how much premium do property buyers pay to live near London’s prime parks and gardens?

The answer is variable and depends on the exclusivity of the parks and other demographics, such as location, historic significance, availability of amenities, transport and overall appeal. According to Rightmove, central London postcodes near Westminster’s largest and most famous parks, such as Hyde Park, Green Park and St James’s Park, command the highest premium, which is more than 140% of the London average. Similarly, property prices near Kensington Gardens and Hampstead Heath are also more than double the London average of £543,968, with average apartment values crossing the £1.3m threshold.

Property prices near the largest parks and green spaces in Zone 1 and 2

Source – Average property prices on Rightmove as of 20th Feb 2025

How do different types of green spaces impact property prices?

Parks are a leisure destination where people go to relax and rejuvenate. Therefore, the size and features of a park play a crucial role in its overall popularity and demand. While large parks in and around central London command the highest premium, smaller garden squares and leafy neighbourhoods with fields and playgrounds offer an incremental boost to property prices.

Modern riverfront properties offering parkland and water views, such as Royal Arsenal Riverside, Poplar Riverside, Imperial Wharf, South Quay Plaza and more, are examples of such sought-after developments where buyers are willing to pay a location premium. Similarly, masterplan schemes, such as TwelveTrees Park, White City Living, Bow Green, Wembley Park Gardens and Lombard Square, are a few more examples of how London’s leading developers focus on integrating green outdoor spaces as a central theme.

How do parks influence investors and rental trends?

The charm of living near green spaces goes beyond aesthetic value, as these areas are usually well-planned and offer enhanced connectivity to business and academic hubs of the city. The outdoor opportunities, world-class amenities, and lifestyle features further add to the pace of growth, including value appreciation and rent increases.

Investors who understand the needs of new-age tenants and their inclination towards maintaining a healthy work-life balance realise the value potential in such opportunities. Therefore, it is no surprise that the areas offering the best rental yields in London are also some of its greenest.

How will future green initiatives impact property prices?

With access to green spaces playing a crucial role in property and rental decisions during the pandemic, developers and city planners have noted what residents want. Policies such as the All-London Green Grid (ALGG) aim to create interconnected green spaces, and developers have responded by incorporating beautiful landscaped areas, rooftop gardens, pocket parks, and tree-lined corridors into their projects. As the demand for urban greenery grows, the premium for properties near London’s old and new parks will hit new highs.

At Benham and Reeves, we bring London homebuyers and property investors the best opportunities near some of the city’s greenest and most desirable parks. Whether it is an elegant period home from our Hyde Park and Marylebone Collection or a luxurious waterfront property within exciting new neighbourhoods like Battersea and Nine Elms, we cater to the market’s diverse needs. With 21 branches, we are confident of helping you find your next London home near the city’s most loved parks and green spaces. Contact us to know more.