Large-scale housing developments may negatively impact property values in surrounding areas, according to an analysis of Land Registry data covering 14 locations across England.
The investigation, conducted by Telegraph Money, examined transaction records and found that average house prices in rural areas fell by £7,000 after major developments were built within half a mile, whilst other homes in the same areas rose by £3,000.
Regional price variations
Over a four-year period, rural homes within proximity of new developments declined 2.7%, whilst properties in the same towns but at greater distances increased 1.3%. The analysis covered areas from Essex to Yorkshire and Northumberland.
In 10 of the 14 areas examined, price growth was weaker near new-build developments compared to surrounding neighbourhoods. In nine of those 10 locations, existing homes closest to the estates experienced value depreciation.
Skelmanthorpe case study
The most significant price impact was recorded in Skelmanthorpe, West Yorkshire, where Land Registry records showed 53 new-build sales within a quarter-mile radius in 2024. Existing detached and semi-detached homes within half a mile sold for an average of £361,000 in the two years before a nearby development. In the two years following, the average fell 18.5% to £295,000. Properties located slightly further out saw prices rise 5.9% over the same period.
Nigel Bishop of buying agency Recoco Property Search said: “The majority of buyers wanting to purchase a home in the countryside seek quiet and natural surroundings. A new-built complex in eyeshot of their desired property would very much disturb the peace and aesthetics associated with country living.”
The findings emerge as the Government pursues its target to deliver 1.5 million homes, with local opposition to developments remaining a significant challenge in many areas.