Understanding the local impact of new residential development – a pilot study
A new report by LSE London makes a contribution to understanding the impact of new housing development on the immediately surrounding area and population. It examines the impacts of eight recent residential developments (all smaller than 300 units) on their local areas, looking in particular at whether prices in the surrounding area always fall as a result of new development. The research found that while prices in some areas did fall briefly during or just after the construction period, they tended to recover quite quickly and move quite closely with the wider area. In other areas prices did not decline at all, and indeed there is some evidence that development can lead to relatively rapid increases in prices in the neighbouring area.
The research was commissioned by Barratt Developments and the NHBC Foundation.