Large new build affect on house prices

Dadto3Boys

We are considering buying a house, yet next to it there is a new estate that is going through permission for 1500 new homes to be built.
What is the general opinion (what reasoning) this will have on living in the house and long term value.
The house we are looking at was new in 2015, oddly sold in May 2020 and an offer a month ago that has since fallen trough. Now on the market for same price and paid.
Any key questions things to consider before we go ahead?

moneysavinghero

You would have to put up with several years of building works going on next to you. Your view may change.

The affect it has on your house price depends on the circumstances. If it's a village surrounded by open fields that will now get 1500 houses built on it then the price would be affected more than if it's densely populated area and the new houses will be built on a brownfield site.

RelievedSheff

We bought a new build on a largeish new estate a couple of years ago. Speaking to the locals from the surrounding properties they have all said that the new builds have increased the values of their properties.

They have just started on Phase 2 of the development here and have yet again increased the prices of the new builds. This has had the knock on effect of dragging existing property prices up with them.

daveyjp

1500 homes could be 10-20 years of building work, that may be a problem.

getmore4less

The new builds will attract people that want new builds and they can be made more affordable with schemes like H2B and 5% deposits.

The new 5% deposits may remove some that that drag away from the second hand market as it will remove a limitation of big deposit. 

Then it comes down to what are they building if there are similar types then that can attract more people and you may find some look around at what else is available

We have 1000s of house getting build in our area but they are pricing higher and the plots are smaller and finding a double garage will not happen on any less than 5 beds.

A quick look and they are all over the ceiling prices for similar older stock but tend to be packed in and 3 stories got popular on the last lot that got built near us a few years back.

I know another area were a relief road was going in and the though was it would depress prices road noise etc,  it made the areas more accessible prices went up there was more demand. 

one issue if very close is a building site makes a lot more mess that you might expect especially if dry summer.
We had a dusty summers  while they completed the site opposite us.

pinkshoes

Dadto3Boys said:

We are considering buying a house, yet next to it there is a new estate that is going through permission for 1500 new homes to be built.
What is the general opinion (what reasoning) this will have on living in the house and long term value.
The house we are looking at was new in 2015, oddly sold in May 2020 and an offer a month ago that has since fallen trough. Now on the market for same price and paid.
Any key questions things to consider before we go ahead?

I'd be more concerned why it the current owner only purchased it 10 months ago and is selling already and why the previous offer fell through. Noisy nightmare neighbours? Divorce? Death?

I bought a house 6 years ago and opposite there were 300 houses about to built. They are just starting phase 2 with another 200 houses being build in the next field now! Lots of building noise, generators running, OMG so dusty!! But it wasn't horrendous. 

I used it to my advantage and got a really low offer accepted. The owner needed to move, lots of people couldn't get a mortgage, and the building site was putting people off.

The only down side I have found was the social housing they put on the new development which was used to house a few undesirables who were obviously on a waiting list and needed to be houses somewhere. Crime rates in the area went up (although the first guy they put in one of the flats is now in prison so crime rates have dropped again!) and not to mention some rather "interesting" families who don't show a lot of interest in parenting their kids, although saying that, they seem to have now understood that in such a small village there are repercussions if you do something selfish as everyone quickly works out whodunnit!!. 

eddddy

As others have said, there's the inconvenience of living next to a building site.

I guess it also depends what the 1500 homes are replacing. If the house you're looking at is currently beside picturesque rolling meadows, which will be replaced by houses - that might have a negative impact on the price of the house.

But if the houses are replacing an eye-sore, like a brownfield factory site - that might have a positive impact on the price of the house.

Also, a 1500 home development will come with infrastructure improvements. Maybe children's play areas, cycle paths, public open spaces, improvements to surrounding roads - maybe even a new nursery, school, doctor's surgery, shops etc, - which you'll be able to use.  Take a look at the planning documents to see what they say about infrastructure.

Dadto3Boys

Thanks for the advice guys, looking deep into the plans it all seems reasonable with outside places, extra football pitches, better access to the house we were looking at etc  - the bigger issue was size of the garden. Newer houses, gardens seem to be a thing of the past. This was Earl Shilton.

Crashy_Time

How does the price compare to the 2015 price?

Dadto3Boys

2015 £250K
2020 £310K (asking price today)
https://www.rightmove.co.uk/properties/87918667#/

davilown

From when we bought our first house in 2011, to when we sold in 2017, we had 200 houses built next to us on an old nursery (flowers) site, our house price went up 50% (£250k to £375k) in that 6 year period.
The older houses were bigger, with parking and larger gardens