Floral towns 'enjoy price boom'

Halifax studied a number of gold Britain in Bloom winners

House prices are blossoming in towns that promote landscaping and floral displays, according to research.

Towns that have won gold in the Britain in Bloom competition had house prices up to 87% higher than the national average, the Halifax group said.

They also enjoyed average rises of 203% over the past 10 years - more than the 182% average of their regions.

Stratford-upon-Avon, in Warwickshire, had the highest relative house price at £138,000 above the region's average.

Britain in Bloom is a horticultural campaign which encourages communities to regenerate their environment.

It began in 1963 and is organised by the Royal Horticultural Society and DIY retailer B&Q.

'British love affair'

Halifax said that of the cities and towns that won gold in 2004, Ilkley, in Yorkshire, had since enjoyed the strongest house price growth - up 32% in the last year.

Over the past 10 years, Bath has had the strongest overall performance, with house prices increasing by 286%, followed by Oxford with 263% and Harrogate at 258%, Halifax said.

South west England holds the most number of gold-medal winning towns at eight, followed by the south east, the west midlands and the north of England, which all hold four.

Tim Crawford, group economist at Halifax Estate Agencies, said: "The British love affair with attractive towns is as strong as ever, so house buyers are clearly willing to pay a premium to live in picturesque surrounds.

"Civic pride and a commitment to maintaining an attractive townscape has clearly paid off for the Britain in Bloom winners.

"House prices in these towns are at a premium to those of their neighbours."

School premium

Separate research for the Royal Economic Society has concluded that parents in London are prepared to pay up to £61,000 more for a house near a top primary school.

According to researchers Steve Gibbons and Steve Machin, a ten percentage point improvement in the "league table" performance of a school can be expected to add at least 3% to the price of a house located immediately next to a school. Houses further away are less affected.

However, higher house prices close to schools may reflect the "herd" behaviour of over-eager parents rather than the performance of a school.

This is because parents are more likely to be influenced by how popular a school is rather than outstanding league table performance.

"Schools that are so popular that they are well over-capacity attract higher house prices, even if the league table performance is not outstanding," the research said.