By After the approval of the proposed expansion of Heathrow Airport by Parliament last year, house prices in the area surrounding the airport fell by 2.6 per cent since June 2018, according to a new survey conducted by estate agent comparison site GetAgent.
Windsor & Maidenhead experienced the largest drop, with a decline of six per cent altogether since June 2018, while house prices in Wandsworth fell by 4.4 per cent. Hillingdon saw prices fall 1.5 per cent over the same period, while Richmond registered a one per cent decline, following the planning of a third runway.
Hammersmith & Fulham saw almost no price change over this period, according to figures released by GetAgent.
Since the North Terminal of Gatwick Airport was granted permission to expand, prices in areas surrounding Gatwick reportedly dropped by an average of 0.9 per cent, including Mole Valley where prices fell by 2.1 per cent over the period. During this period prices in Crawley fell by 3.2 per cent and by 4.2 per cent in Tandridge.
Potential log-term price increases
GetAgent estimates that house prices may actually increase in the long term in based on historical evidence recording house prices near other UK airports that have undergone similar expansion.
In 2008, between the proposal and withdrawal process of a second runway at Stansted Airport, house prices fell by 2.6 per cent. Figures then saw a subsequent rebound of 56 per cent on average, with an extensive rise of 95.1 per cent in Braintree, during the terminal’s major expansion.
After the completion of the second runway at Manchester Airport in February 2001, property prices rose by 26.6 per cent on average, with the districts of Trafford increasing by 33.2 per cent and Stockport by 27.2 per cent, according to the analysis by GetAgent.
Property prices in areas surrounding Birmingham Airport saw a drastic rise of 31.1 per cent and 33.5 per cent in the Birmingham district alone, following the runway extension in May 2014.
GetAgent’s chief executive officer, Colby Short commented: “There’s no doubt that the construction of a third runway is going to hurt house prices for those directly impacted, due to the expansion itself…However, when looking at other areas of the UK to have seen similar expansions, the long term impact may not be as detrimental to the local housing market as first thought.”
Mr Short added: “That said, the implications of this particular expansion are arguably on a much greater scale and so only time will tell if the local property market can recover from the blow it has been dealt.”
Environmental impact of new expansion
Apart from the uncertain future of house prices in surrounding areas, a third runway at Heathrow would result in an increase in air traffic, and the increased likelihood for those in the affected area to experience regular increased noise levels. Expansion plans could also have a detrimental impact on the environment, according to Greenpeace UK.
John Sauven, executive director at Greenpeace UK said: “Heathrow’s backyard is bigger than the average city and needs to be listened to, ideally while it can still be heard over the scream of jet engines.
“This project is not in the interests of people living in the west of London. It is not in the interests of the UK economy. And it most certainly is not in the interests of the global climate”, Mr Sauven added.
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