Engaging Topics: What about the value of my home?

In the first in a new series of Engaging Topics articles, where SEC Newgate’s Advocacy Local team will share insight on some of the big questions facing developers and communities, we examine the concerns that communities often have about the impact of infrastructure development on property prices. 

When consulting on large infrastructure proposals, one of the most raised questions we hear from residents, often conveyed with great certainty, is that ‘X development will reduce the value of my house’.  

It’s not unusual for someone to turn up at a public exhibition quoting specific figures as to how much the advertised proposal will allegedly reduce the value of their home in either pounds or percentages. 

Are these concerns legitimate? 

These are of course legitimate concerns, as is every concern raised during a public consultation. It is natural that anyone faced with a change to their local environs is going to worry about whether such a change will impact on their life, including on the value of their home. The fear of personal financial loss on what is most people’s most significant asset can be a core driver for further objections to a project. 

That said, and despite such concerns, there is currently no evidence to suggest that infrastructure projects, such as solar farms, have any impact on house prices.   

Is it all about perception? 

Housing markets, like any functioning market, are largely priced through perception, which affects demand. Research consistently shows a low public knowledge of renewable energy projects, which leads to a natural uncertainty on impacts. A key uncertainty is the worry that a development has a negative impact on house prices -  this has been shown as one of the key drivers in detracting support for a project.    

For example, an initial judgement that a solar farm may represent industrial encroachment in the countryside or impact on a certain view will in turn lead to fears of a negative change to property values in the area. This perception, which is fuelled by uncertainty, can be changed over time from an initial negative reaction to an acceptance of the proposal as part of the surrounding landscape and also, in the case of energy infrastructure, as part of a wider move towards sustainability and energy futureproofing.  

How can perceptions be changed? 

Addressing resident concerns on house prices can be a difficult issue to answer on its own and should be taken in the context of uncertainty or lack of knowledge about the type of development being proposed. This is where perceptions of a scheme can be addressed directly through good consultation and engagement with those communities closest to the proposed development. Aside from the usual public exhibitions that can address some of the broader initial fears, early and ongoing engagement between residents and the developer can help to eliminate many of the worries that are rooted in low knowledge. Through the presentation of clear, factual information early on in a project, as well as having an approachable and accessible project team, many of the fears can be dealt with before they take root. 

Is design important to reducing negative impact? 

As well as explaining a scheme to communities, the developer can use early and ongoing engagement to work with local residents and stakeholders to make positive design changes to a scheme that benefits those who live nearby. This can include everything from additional visual screening to a change in the planned construction route. Dialogue on design between the developer and the community is not only important in identifyingand addressing local concerns but also helps to remove some of those early negative perceptions that can lead to fear about house prices.  

Is it important to know the area where you plan to develop? 

The reaction to any proposed scheme, whether positive or negative, is context specific. This is why it’s important for a developer to learn as much as possible about the areas in which they want to invest and about the community living there. We encourage a place audit which will include bespoke insight gathering to ensure there is an early understanding of local sentiment. This can be supplemented by social and market research in the locality to identify issues and inform messaging. Understanding the local population helps developers to have more constructive conversations with communities and stakeholders that can help to alleviate their concerns, build in meaningful community benefits, and make design changes that are sympathetic to local ambitions.  

In conclusion 

Large-scale infrastructure proposals, whether they be solar, battery storage, wind, or a new road, will shape how people feel about a place much more than how much homes are worth. It is important to address uncertainty and negative perceptions early through engagement and cooperation with those most affected, particularly those in established communities who would be most resistant to change. Ensuring that developments can coexist and be accepted in their local context with minimal change to residential amenity can then help to remove perceptions of future falls in property values.  

We’re here to help 

Contact local@secnewgate.co.uk if you’d like an initial conversation about community engagement in support of a development.