Property stigma: wind farms are just the latest fashion

Sally Sims and Peter Dent

Journal of Property Investment & Finance, 2007, vol. 25, issue 6, 626-651

Abstract: Purpose - The Government's aim to curb CO2emissions from energy production has resulted in the growth of a new environmental feature; the wind turbine. Whilst this may help tackle climate change, there is concern that the visual and aural presence of these turbines could have a negative impact on house prices. Opinion studies undertaken within the UK appear to show significant variations in attitudes towards wind farms in different locations (in particular between Scotland and southern England) and at different stages during the development process. However, to date, no research has established the actual impact on proximate house values. Therefore, the purpose of this study, sponsored by the RICS, is to develop a methodology to measure the likely impact of onshore wind farms on house prices in the UK. Design/methodology/approach - This study focused on residential property surrounding two wind farms in Cornwall. Transaction data for 1,052 house sales completed between 2000 and 2004 were obtained and analysed using regression modelling and comparative sales analysis. A second study undertook an analysis of the planning objections to wind farms in this location. Findings - The analysis of transaction data found some correlation between distance from a wind farm, and value. However, the data were insufficiently detailed to draw any sound conclusions. The analysis of planning objections revealed that 95 percent of objections came from people living outside Cornwall. Research limitations/implications - Whilst the methodology is sound, the available data were limited to house type and selling price, and therefore not sufficiently detailed to highlight any small changes in value. Originality/value - The paper establishes general criteria which could be used to evaluate the potential impact of onshore wind farms on property values.

Keywords: Property finance; Residential property; Wind power; Windmills; Renewable energy; United Kingdom (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (32)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpifpp:v:25:y:2007:i:6:p:626-651

DOI: 10.1108/14635780710829315

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