Thursday, October 6, 2011

They say “Location, location, location”…

Park life puts £21,000 on home

... and I say "it's the community which creates land values", for example by having public parks. "Houses close to public parks or open spaces now cost up to £21,000 more, revealing a “green premium”. A survey by finance company ING Direct found that the price difference was higher in cities with less public space as it becomes scarce because of pressure on town halls to sell off land. Julian Hartley, of ING Direct, said: “As planning regulations are relaxed and more local authorities sell off green areas for housing development, we’re likely to see the green premium increase significantly.”

Posted by mark wadsworth @ 02:03 PM (1315 views)
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6 thoughts on “They say “Location, location, location”…

  • This news is slightly contradictory, if parkland increases a properties value because of the scarcity of parks due to relaxed planning rules then would that not put at risk the value of said property if the corresponding park is at some stage in the future, is used for building houses on?

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  • sibley's b'stard child says:

    So presumably more urban sprawl = scarcity of green areas = attendant increase in house values.

    Hang about, I think I may have found a way of capitalising on NIMBY greed…

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  • mark wadsworth says:

    Sibs, that’s a dead end. Let’s say there are two nice parks in the town, generating that extra £21,000 in selling prices for surrounding houses. If they sell off one of them for housing, those houses fall in value by about £21,000 and the ones round the other park go up by a similar amount (or may bea bit less) for scarcity value. So the losers will scream blue murder and the winners will celebrate their sensible “investment in society”.

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  • sibley's b'stard child says:

    Hmm, guess I hadn’t thought that one through enough.

    Okay, let’s take your scenario. What you could have is a variation on the Prisoner’s dilemma. What you could do is approach the two communities and offer a proposal. Point out, with evidence, that by losing one of these parks, the house prices in the other community (with the remaining park) would increase in value.

    Allow them one vote (per community). A vote of ‘Yes’ is a statement of intent that they wish the other community to lose their park (to allow more homes to be built) so that their homes increase in value. A vote of ‘No’ indicates that they wish neither park to be lost to development.

    If one votes ‘Yes’ and the other ‘No’. The community that voted ‘No’ would lose their park at the expense of the ‘Yes’.

    If both vote ‘No’ then neither lose their park and no-one gains from the promised HPI.

    If both vote ‘Yes’ then both lose their parks in favour of more homes.

    The Prisoner’s Dilemma would dictate the rational choice would be to vote ‘Yes’ each time.

    What do you think?

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  • mark wadsworth says:

    Sib’s, that is splendid.

    I was thinking something similar recently, most NIMBYs are usually happy if development happense somewhere else (apart from the hard core hysterical lung rippers like Melanie Phillips). So if plans are submitted to Bradford City council, then people in Bristol can vote on whether they should be allowed to go ahead; if there are plans for building in Aberdeen, people in Liverpool get to decide and so on.

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  • sibley's b'stard child says:

    Absolutely MW, altruism is so over-rated; if there’s one thing you can depend on and exploit it’s other peoples’ self-interest.

    That idea of a reverse-lottery of sorts is one way around NIMBYism. Either that or a seriously vote-killing central gov diktat.

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