Last week’s government announcement of a third runway to be built at Heathrow Airport could see local house values hit serious turbulence, plummeting by 20% or more, it is claimed in a report on OPP Today.
Leading online estate agent eMoov says reduced demand could see prices fall by 20% or more, creating London’s longed for affordable housing market, but one that buyers won’t want to touch. Russell Quirk, Chief Executive Officer and founder, says the disastrous implications for those affected are an increase in noise and air pollution rendering their properties undesirable to buyers.
“No one in their right mind could find a property desirable if that property sees jumbo jets hurtling past at all hours of the day and night, rattling secondary double glazing and leaving the faint aroma of jet fuel lingering in the air.
“Homeowners have been screaming out for an affordable part of the capital and the decision to place a third runway at Heathrow may have inadvertently provided that, but not as they would have wished.
“Although the expansion will mean great things for London and the economy, it could see house prices in those areas worst affected by the noise and air pollution plummet by as much as 20% as a result. We aren’t talking a month or two of minor road works, this is a seriously large project with ongoing, permanent implications for those impacted by it.
“A fall in value of 20% is a very realistic expectation given the negative impact noise and air pollution can have to a property’s desirability and we could see the average house price in the likes of Hounslow and Hillingdon sink to around £330,000.”
The required demolition of more than 700 homes will obliterate the communities of Longford and Harmondsworth, but could also have far-reaching impacts on the property market across the whole of London. In addition, Windsor and Maidenhead could also be severely affected by flight paths for a third runway at Heathrow. Although prices have risen at a marginally lower rate in the last decade (68%), the higher price of property means a 20% decrease would see homeowners in the area almost £100,000 out of pocket.
Even areas such as Richmond, Westminster and Hammersmith and Fulham could see a depreciation in property value due to noise and air pollution.
In separate research released this week, online estate agent HouseSimple.com revealed that living next door to a cemetary could knock up to 25% off the value of your property. There are around 14,000 cemeteries in the UK which means hundreds of thousands of homeowners live next to or near a cemetery.
HouseSimple.com looked at property prices on streets in 13 UK towns and cities which are next to cemeteries, and compared those prices to the average price for the postcode area. The figures revealed that house prices on these streets are on average 23% lower than the postcode average.
Alex Gosling, CEO of HouseSimple.com comments:
“For many of us, living next to a cemetery would cause us sleepless nights. But for buyers who aren’t easily spooked, they could pick up a bargain. And if you can get past the fact there are gravestones a few yards from your front door, what you’re actually overlooking is a serene and quiet space, that is unlikely to ever be developed.”