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House prices badly hit by Heathrow runway plan
Mira Bar-Hillel16.03.09
PLANS for a third Heathrow runway have had a severe effect on house prices in the area, figures reveal today.
Asking prices in the borough of Hounslow, which contains most of the homes worst affected by the Government's expansion, have dropped by 14.1 per cent in the past year, compared with 1.8 per cent across the capital, price monitor Rightmove found.
In Hillingdon, where the new runway will actually be built, average asking prices fell by 6.7 per cent.
Experts today said the airport plans had been a major factor in depressing values in the west London boroughs.
Miles Shipside of Rightmove said: "It remains to be seen whether the positive effect of thousands of extra jobs outweighs negative impacts that inevitably come with such an expansion."
Elsewhere in London, today's figures show that home owners' expectation that they will have to accept offers well below what they want has resulted in a substantial jump in asking prices over the last month.
The £11,321 average increase means that asking prices are only £7,500 below their level a year ago, or 1.8 per cent, in contrast with actual sale prices which have fallen by well over 10 per cent.
Mr Shipside said: "Most prospective spring sellers are being deterred by the problems in the current market.
"There is evidence of buyers looking to offer 25 per cent below last year's peak prices and this level of discount is likely to be a major factor preventing many aspiring sellers from coming to market."
Reader views (5)
So people think that a third runway will be built regardless of who wins the next election? They're probably right. But seeing that at non-peak times the third runway will reduce traffic on the southern runway and thus over my old home of LB Richmond, house prices here should increase a bit!
- Tonyb, Melbourne, Australia, 17/03/2009 10:44
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The runway has nothing to do with it. People need an excuse to drop prices to get sales going. What better way than being able to blame it on outside forces. In any case in 10 years time fuel will be so expensive, and the pound so low that planes will hardly use the runway, as people would not be able to afford to go on holiday, and in 20 years time the disused runways will be built on for housing.
- Jim@Sea, Offshore, 16/03/2009 19:10
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predicted Flattened houses; nobody wants to buy.
What with less people flying now; why not build two extra runways, for when they do start flying again.
- Mickyinlondon, london, 16/03/2009 17:27
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perhaps they're just realists.
- Bobby Gillespie, SE1, London, 16/03/2009 14:00
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Are we supposed to be surprised?
- Paul, London, 16/03/2009 10:27
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