Will a planning application for a new housing development affect the value nearby homes?

Buying a HousePlanning applications for new housing estates are always a hot topic in local communities.

This is usually due to the loss of an amenity, which is all too often a green field, but there is also the undercurrent of the effect this new development could have on house prices.

The loss of a view to be replaced by a number of brick properties is one factor to consider but the addition of new homes does not necessarily mean a negative impact on house prices.

Indeed in the case of land that has been left to resemble a derelict wasteland, nearby homeowners will often welcome the news of a new housing development as helping to prop up their house value.  This is particularly true in the case of brownfield sites.

Planning applications to build on greenfield areas, however, are generally far more contentious. Local campaigns will raise the profile of the proposal and the concerns about it and should the application be approved the negative aspects of the building development will have been well documented.

Supporting values

So should you worry about the effect on the price of your house – or one you are considering buying?

The general consensus is that once building gets underway and certainly when the development is finished, the local community general accepts the changes.

One study actually found that the planning conditions and potential additional amenities tied in to new housing developments helped to push house prices up.

Of course the effect on the value of surrounding houses will be affected by the type of housing and what the land had been used for before.

Do your research

When choosing to buy a house in an area where there is a planning application sitting with the council it is wise to study that and read local press articles relating to any campaigns surrounding it.

Armed with the correct information you should be in a position to decide whether the development would have a long-term affect on the value of the property you want to buy.

Sellers are asked to share any knowledge they have about planning applications in the TA6 form, which should hopefully flag up any issues ahead of a buyer committing to the purchase.