New Housebuilding ‘Does Not Reduce Local Property Values’

New residential developments do not lower property values, a new report has concluded, a fact that steel reinforcement mesh suppliers and others will no doubt be relieved to hear.

The study, carried out by LSE London and commissioned by the NHBC Foundation and Barratt developments, has found that changes in house prices in the surrounding area and the broader districts indicate that such developments could in fact stabilise or even increase house prices once the work has been completed where the market is both stable and rising.

In addition, where lots of opposition was seen throughout the planning and construction stages, this typically decreased once the development had been finished.

“Many people are put off accepting new development in their immediate locality by the fear that their own house price might be decline as a result of the additional supply. The pilot study of eight ‘typical’ sites shows that this fear is likely to be unwarranted and indeed that prices can actually be enhanced,” professor of housing economics at LSE and report author professor Christine Whitehead remarked.

This is perhaps just as well given the fact that new builds appear to be on the rise in the UK. Figures from the National House Building Council have revealed that the total number of new properties registered in the country in the first three months of this year reached 40,281 – a rise of 18 per cent compared with the same month in 2014.

Although public sector registrations dipped by one per cent, those in the private sector were up by 26 per cent for the period.

Earlier this month (January 18th), Tata Steel confirmed that it would be making huge job cuts across its numerous sites in the UK after European steel prices dropped because of cheap imports from countries like China.

It was revealed that 1,050 jobs would go at Port Talbot, Hartlepool, Corby and Trostre. The business will now be looking at how more support to local communities can be offered, while also stimulating job creation in the regions affected.