Horse race courses add value to nearby properties, new research shows

With the horse racing season in full swing, including Royal Ascot this week, new research shows that house prices within the same postcode as a race course in England are 19.6% higher than the average of their respective counties.

Using data from property marketing firm Zoopla, estate agent Chestertons has found that house prices within the same postcode as mixed race courses command a 25.3% price premium, followed by 18.5% for national hunt race courses and 15.2% in the same postcode area as flat racing venues.

Mixed race course locations also have the highest average price at £346,355 although the firm points out that this can partly be attributed to the proximity of a number of courses to London. Meanwhile, the average house price for postcodes containing a flat racing course stands at £276,497 and £258,813 for national hunt racing venues.

In regards to average price it is no surprise that the five highest average prices are all located within the South East of England. Sandown Park (KT10) in Surrey has the highest average house price of all race courses in England at £905,635, followed by Ascot (SL5) with an average house price of £694,391. In third place house prices in the Epsom postcode KT18 average £494,341, while house prices in PO18, home to Goodwood, average £484,676 and £457,630 in SL4, Windsor.

Sandown Park (KT10) and Epsom (KT18) have also seen house prices increase at a faster rate in the last 12 months than in any other location with a race course, as house prices in both areas have picked up 8.5%. As a whole, house prices in national hunt racing postcodes have grown by an average of 4.5% annually, compared to 4.1% for mixed racing postcode areas and 4.0% for flat racing postcode areas.

Rather predictably over the last five years the postal areas that have performed strongly are all located in the south and within commutable distance of London. Once again, Sandown Park and Epsom top the list with respective growth over the last five years of 31.3% and 26.1%. Plumpton (BN7) in East Sussex has seen house prices grow by 25.0% over the same period, followed by 23.8% in TW16 (Kempton Park) and 22.9% in Brighton (BN2).

However, when it comes to house price premiums, across the country living within the same postcode area as a racing venue can be very beneficial financially. House prices in LS22, home to Wetherby racecourse in West Yorkshire, average £348,967 resulting in a 119.1% premium over the West Yorkshire average.

The research also shows that house prices within the same postcode area as Southwell (NG25) race course in Nottinghamshire are currently 111.7% higher than the county average, beating Ascot race course (SL5) where house prices are 111.4% higher than the average across Berkshire.

Elsewhere, house prices in BA1, home to Bath race course, are 64.5% higher than the Somerset average; homes in NE3 in Newcastle upon Tyne are 55% higher than the Tyne and Wear average and a 49% premium applies to homes in DN2 in Doncaster, South Yorkshire.

‘In recent years horse racing has become increasingly popular and events such as Royal Ascot, Glorious Goodwood and the Epsom Derby are key dates on the social calendar for hundreds of thousands of people across the country. For those living close to race courses our research shows that the disruption caused by big racing events is worth the hassle,’ said Nick Barnes, head of research at Chestertons.

‘The staging of big events pumps money into local economies and house prices close to countries throughout the country are benefitting from this, with certain locations achieving substantial price increases since the downturn in 2008,’ he added.