Will a new housing development decrease the value of my house?

Hestia Town Planning have helped many local residents, communities and parish councils respond to development proposals in their area. Quite often, the same fears reoccur, i.e. that the new housing development will worsen local amenities, reduce health and wellbeing and reduce the value of their home.

Whilst impacts on local amenities and health and wellbeing are considered during the planning process, the question of the impact on house prices is never directly addressed as house price impacts are not a material consideration in planning decisions. Therefore, when commenting on a planning proposals, we would generally avoid using decreasing house prices as an argument.

So does new housing development reduce the value of existing properties around that development? 

In 2015 SE London was asked by the NHBC Foundation and Barratt to address this question and the conclusions were quite interesting and may come as a relief to some.

The study, used statistical and qualitative evidence to look at the impact of eight average sized (60 – 280 units) new developments completed within the last five years on their immediate neighbourhoods and wider local areas. The evidence offered a clear answer to the research question: no, house prices do not always decline around new housing developments, at least not for a sustained period of time.

Sometimes there were short term price reductions during or immediately after the construction period. More generally prices in the wider area continued to follow existing upward trends. In the immediate locality—within a 0.3 mile radius of the new development—prices in some cases rose more quickly than in the wider area once the development was completed.

The research has been open to some criticism, for example the research did not look at very large scale developments which disrupt the area for long periods. However, these results are still important as they show that house prices do not always decline as a result of new development despite widely held fears that they do, which fuels much opposition to new house building.  

The full research can be found at the link below and may give some relief if there is a housing scheme proposed in your neighbourhood.

https://www.lse.ac.uk/business/consulting/reports/understanding-the-local-impact-of-new-residential-development

How we can help

If you would like to respond to a proposal in your area, whether it is for one dwelling or 1000, then we can write a professional letter on your behalf. The planning process is not the easiest process to navigate. We understand planning policy and will work with you to make sure your voice is heard and makes people listen and take note.

How does a new housing development affect school places?

We had a query in the week from a concerned parent, seeking advice on how a new housing scheme could impact on her child’s favoured school place.

In this particular case, there is a housing scheme underway for 450 dwellings. The parents’ concern is that the housing scheme lies closer to her favoured school, meaning that the newer children will get first choice of the “better” school.

Prior to the development, the chances of her child being offered a place were quite certain, however, the housing development and potential increase of children has now made these chances more uncertain.

This blog aims to discuss how housing developments may affect school places and what you can do to help influence school capacity.

Can I object to the development if I think there are not enough school places?

In short, if the Developer can provide mitigation for lack of school places , then the Council is unlikely to refuse the application on educational grounds.

You would need to show the Council that the Developers calculations are incorrect and/or that the additional places can not be provided.

There are not enough school places so why are housing schemes permitted?

When a developer submits an application for a large housing scheme, the Developer and Council will estimate how many children the development will generate. If we use a secondary school as an example, in the case of 450 houses, it is likely that the scheme could generate an additional 90+ children (note – these will not all be year 7).

The Developer will then need to show the Council that there is sufficient capacity within local secondary schools to accommodate this increase. More often than not, schools will be oversubscribed and the Developer will need to provide some kind of mitigation (usually through a Community Infrastructure Levy or Section 106 Agreement). Mitigation varies, however usually the Developer will be required to pay local schools a levy to expand the size of their school and intake. In some cases, if the local schools have no room to expand then Developer will have to build or fund a new school to cover the increase in children.

The main point here is that a developer will usually find a way – whether through funding or provision of a new school.

The children in the new housing development now live closer to my first choice school and I am not sure if I will be offered a place.

Usually, a school will offer places based on catchment and proximity. Unfortunately, this means that children living closer to the school will get first refusal and you may be offered the next closest school with available places. Therefore you want to ensure that your favoured school has as many places as possible.

So what can you do?

Unfortunately, many people waste their time and consultation voices by simply objecting to a scheme on lack of education provision.

Developers will most likely find a way to provide education facilities. Therefore, you are far better trying to use your voice to influence where and how the Developer is going to fund schools, rather than trying to put a stop to the entire scheme.

There are a couple of ways in which you may be able to influence your favoured school intake – however timing is key.

Firstly, does your school have the room for expansion? If so, speak with your education department at the County Council and try to get their support. The Education Department will be responsible for advising the Developer which schools require expanding – so you want to make sure your chosen school is being pushed for funding.

If the application has already been submitted to the Council for consideration, then read the documents that have been submitted to support the scheme. In particular, look for any reference to education and school capacity. What is the Developer proposing to do about education? Do you agree with the information provided?

Pull together any information you have and use your 21 day consultation period as a way to tell the Council that you want the Developer to fund the expansion of your favoured school. Try to give valid reasons and make a strong case.

If the application hasn’t been submitted then try to influence funding via the Community Infrastructure Levy. Every Council must produce publish a list of infrastructure projects, which are taken from the Infrastructure Delivery Plan. This is where the Community Infrastructure Levy will be spent.

If you know that your school is over-capacity and there is development being planned in your area, then contact both the Local and County Councils to push for funds to be spend on your favoured school.

If you can get your school listed for expansion in the Infrastructure Delivery Plan, then this means that money will be used from development in the area to fund it.

If you need further information or help writing a consultation response, then get in touch.

Call 07463136687 or email: hestia.planning@outlook.com