The local impact of new housing in the North East

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The local impact of new housing in the North East

24 Apr 2018
Residents are often concerned that a new housing development nearby will reduce the value of their homes. Does the evidence support this? 
The understanding of housing markets and prices at the local level is less advanced than it is at wider geographic scales. This follows from the fact that the reduction in scale coincides with an increase in the significance of factors that are highly location-specific (and therefore difficult to measure directly), all of which may impact on the value of adjacent land and property. It is therefore very difficult to identify the specific impact of new housing development on the existing housing stock locally.
 
In this context, our research presents a methodology for quantifying property value change over time in the area around new housing developments. It is based on transaction volumes and house prices around 26 sites across the North East of England between 2007 and 2016.