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New Build Development Impact On Local Market Price

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Hi All,

I'm looking for advice, evidence, thoughts, examples, opinions, etc, on what the likely/potential impact is on a local housing market when planning permission has granted for a private New Build housing development and what the likely change in house prices would be once the development is complete.

In one town I am considering to buy my first property, I started to notice quite a few houses being put on the market all around the same area (literally adjoining roads) and all at the same time. Not necessarily too much to worry about, but I saw it as a small red flag and after a little research I have found out that a large developer has been granted planning permission (in December 2019) for a plot of 750 houses, situated in land immediately north and south of the specific road I am looking at (I'm talking over the back garden fence for the North site and a stones throw away for the South), with work due to start some time in 2020.

To me this explains why quite a few people have decided it's a good time to get out, with 3-5 years (potentially more) of *building work, noise, pollution, dust, dirt, congestion, traffic, etc to look forward to. I expect that many of these sellers would probably look to stay in the surrounding area, as it's a nice and sought after location, but don't fancy being slap bang in the middle of a building site so are looking to sell up now and find a nicer spot.

If I was to consider buying the place I would be doing so in the knowledge of what awaits* HOWEVER, I don't know what impact this is likely to have or could have on the value of the property that I am looking at, especially in the long term when the development is finished and there are 750 new homes to consider.

On the one hand, investment in an area is a great sign and could make it a good time to buy before prices quickly rise. On the other hand, you will have an influx of new homes in the area giving much more choice to a potential buyer, competition from a developer offering help to buy schemes and other unknown factors that could have a devastating impact on the prices of local houses, especially considering the proximity of the development to the house I am looking at specifically.

Ignoring the short term impact of the building site, noise, traffic, etc. Does anyone have any evidence or examples of the impact on house prices NEAR to large new developments? Is it a great time to buy before local prices sky rocket? Is it walking into a money pit with no way out but a huge loss? Or is there simply no way of knowing and no evidence to support either?

Thanks in advance for any help and advice.

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