Will proposed development effect my houses value?

soapstar88

Hi,

To give you a brief overview there has been a large application for 500 hundred houses directly opposite my house (currently a field) which is located to the rear of the property. On top of this there is an application for a supermarket (probably tescos). Its in an area where property prices have been increasing very rapidly.

If this goes ahead will this have an effect on the value of my property? I would think the addition of a supermarket nearby would add to the value possibly? But an additional 500 houses?!

Thanks for any advice

Surrey_EA

Most buyers would prefer to have an outlook over a field than a housing estate of 500 homes.

Exactly how this development will affect the value of your home is impossible to quantify. It is always best to wait until any nearby developments are completed, rather than try and sell during construction.

Davesnave

No, it will not effect your house value, but it might affect it.

Seriously, there are so many variables it's impossible to say.

They built an estate of around 300 houses behind my Dad's old place around the time I inherited it, and some of the properties in his close were badly affected by overlooking, which must have had some impact on their desirability.

In our case, there was no serious overlooking and nothing directly comparable being built, which was another consideration. Nevertheless, I decided to renovate close to new build standard, because of the possible competition.

At that time, houses were increasing in price rapidly, so when we sold, we broke the ceiling price for the close; a figure which still hadn't been exceeded when I looked last year, 8 years on.

It's a lottery, I think, but I wouldn't imagine a serious dent in the value of existing houses. It might be a nuisance if you wanted to sell just when the phase behind you gets going, because of the noise, or if it was delayed for a long time, because people fear the worst. Once something is built, they know what threy're dealing with.

lincroft1710

My advice - wait until the planning application has been approved, then ask the question.

If an extra 500 homes are available in an area which has queues of people trying to buy, then there could be a negative effect on house prices as there would be more supply to meet the demand. But in general, house prices are rarely affected.

ambioni

Reserach has shown that a supermarket nearby can add 5% to your house value and if it's a Waitrose it can be as much as 10%. New housing estate may not be everyone's idea of a great neighbour but new houses can lead to new infrastructure, schools, etc...which can all lead to an increase in house values. Look on the positive side.

white_noise

ambioni wrote: »

Reserach has shown that a supermarket nearby can add 5% to your house value and if it's a Waitrose it can be as much as 10%. New housing estate may not be everyone's idea of a great neighbour but new houses can lead to new infrastructure, schools, etc...which can all lead to an increase in house values. Look on the positive side.

which research?
WN

Surrey_EA

ambioni wrote: »

Reserach has shown that a supermarket nearby can add 5% to your house value and if it's a Waitrose it can be as much as 10%.

I'm not convinced by that, be interesting to see the research. I cannot think how it's possible to quantify how one single factor affects property prices.

It's probably more likely that Waitrose chooses to build its stores in more affluent areas, where property prices are higher.

ambioni

white_noise wrote: »

which research?
WN

http://www.bbc.co.uk/news/business-32166019

Surrey_EA

"The research also looked at locations with the highest house price premiums compared with their local area.
It found Chiswick in London, which has a Waitrose, a Sainsbury's and a Marks and Spencer, had the highest average house price premium, with homes there costing £918,287 typically, which is 117 per cent or £495,601 more than the average property price for the surrounding borough of Hounslow."

http://www.telegraph.co.uk/news/shopping-and-consumer-news/11512665/Living-near-a-Waitrose-puts-38k-on-value-of-your-home.html

I stick by my belief that Waitrose build their stores in more affluent areas, rather than being responsible for prices rising once they open a store.

ambioni

Surrey_EA wrote: »

I stick by my belief that Waitrose build their stores in more affluent areas, rather than being responsible for prices rising once they open a store.

Fair point- and quite hard really to tell which is affecting which. Having lived in Scotland most of my life I know that we were one of the last places to receive Waitrose penetration and even now there are only a few stores. Some are in affluent areas (Morningside district of Edinburgh) others in much less affluent places (Stirling)

eddddy

It's unlikely that they will build 500 houses in one go - so the building activity might last 3 or 4 years. It may be more difficult to sell your house during that period.

On the plus side, 500 new homes are likely to result in improved amenities and infrastructure. Large new developments in areas near me have resulted in new cycle path networks, playgrounds, local shops, a new school, new bus routes, road improvements etc.

Even if those things are of no interest to you, they might be valuable to your potential buyers in the future.