Property values surrounding the nation’s biggest military barracks carry an average house price premium of 9.1% across the UK, with this premium increasing to 46.3% within the capital, according to research by London lettings and estate agent, Benham and Reeves.
However, it’s homes close to sites of historical military significance that command the highest house price premium, coming in 50.7% more expensive compared to the wider area in which they are located.
Benham and Reeves analysed the property market in postcodes home to a current military barracks, seven of which are located within London, as well as analysing 13 locations of historical military significance and the property price premiums they command.
The research found that outside of the capital, homes within arm’s reach of major military barracks cost an average of £322,844. This is a premium of 9.1% compared to the average price for the wider local authority in which they are located.
As for London, that house prices surrounding some of the most well-known military garrisons carry a premium of 46.3% compared to the citywide average.
Marc von Grundherr, director of Benham and Reeves, said: “We have a great respect for the military in this country and we remember with pride all of those who have served, and continue to serve, in our armed forces.
“The British military really is intertwined within many communities and so it’s no surprise that, for the large part, areas of current or past military significance are in high demand within the property market and command a healthy house price premium.
“This is particularly true in London where areas of military significance also lie close to other major landmarks, as well as the residence of the royal family, so the cost of purchasing within the same postcode is particularly high.
“Of course, as is always the case with the property market, a good range of diversity means that there are a number of military towns that offer a higher level of housing affordability when compared to their wider areas.
“So whether you’re currently serving or simply a military enthusiast, climbing the housing ladder won’t necessarily cost you more.”
The highest house price premium is currently found within the TR12 postcode, home to the Royal Navy’s RNAS Culdrose.
With an average house price of £503,708, the area comes in 59.4% more expensive than the wider average house price of £315,944 across Cornwall.
However, some current barracks do offer affordability for buyers, nowhere more so than HMNB Devonport in PL2 where homes cost an average of £198,960. This is -12.3% below the wider Plymouth average of £226,858.
Affordability is also on offer near Colchester Garrison (-11.8%), HMNB Portsmouth (-5.1%), Aldershot Garrison (-4.5%), and York Garrison (-2.1%).
London premiums climb as high as 123.5% for homes near the Hyde Park Barracks in SW7 commanding an average price of almost £1.2m compared to the wider Westminster borough average of £964,079.
Westminster’s Wellington Barracks in SW1 also commands an average price 62.2% higher than the wider borough, while hefty premiums are also found near RAF Kenley (25.8%), RAF Northolt (22.9%), and HMS President (18%).
However, the capital is home to some relative affordability where some military locations are concerned.
In Greenwich’s SE18 postcode, homes surrounding the Royal Artillery Barracks currently command an average of £432,046, -3.4% below the wider borough average of £447,445.
In Camden, the cost of buying close to the Regent’s Park Barracks in the NW1 postcode currently averages £850,350, -2% below the wider Camden average of £867,771.
