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How a Wind Turbine is likely to affect your Property Price? UK
Will Wind Turbines affect my Property Value?
There’s no doubt that wind turbines are big enough to be noticed and if you’ve had one mounted on your roof top or decide to install one in the garden, then you probably want to know whether that is going to affect the property value if you choose to sell. Most people would say that a big construction such as a wind turbine would bring the price of a property down. They may be right but surprisingly little research, until recently, has been done into the side effects of wind turbines.
Properties Close to a Wind Farm
There are currently around 11,000 wind turbines in the UK, contributing approx. 30 GW of installed capacity and powering the equivalent of more than 21 million homes.
There have not been many studies about how your proximity to a wind farm or other major turbine construction is going to affect the price of your property. The London School of Economics (LSE) have undertaken one of the most widely cited UK studies and reported that those within 1.2 miles of a large wind farm could see reductions of up to around 13% in property values. For those living 2.5 miles away that goes down to a much smaller effect of around 3%. More recent academic reviews suggest that these effects are highly localised, tend to diminish over time, and are not consistently observed across all regions or housing markets.
A report by the Centre for Economic and Business Research claims that the notion that wind farms decrease property values are more often than not cited by those who object deeply to them as a renewable power source. Subsequent UK and international academic evidence indicates that long-term impacts on property values are often modest, mixed, or statistically insignificant once wider market factors are accounted for. The debate will no doubt continue to rage about their aesthetic value and the impact wind turbines may or may not have on the price of individual houses. It’s an argument that is not just confined to the UK with other countries ferociously debating the issues and objectors to planning permission using a decrease in house prices as one of their leading arguments.
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Properties that Install a Wind Turbine
There has been even less research done on the actual impact of having your own domestic wind turbine and how much it will impact on the price of a particular house. Available evidence suggests that effects are highly case-specific and influenced by buyer preferences, local market conditions, and the quality and scale of the installation. It’s also one of the reasons why building a wind turbine in an urban area is more likely than not to attract objections to planning permission. Factors that may affect the value of your house and those surrounding it include:
- How big and obtrusive the wind turbine is.
- The noise it produces.
- Whether it returns on the investment – in other words is the turbine ‘paying its way’?
The truth is that there are not many people installing wind turbines in a domestic situation where they don’t have enough clear land available. In suburban and urban areas there is not normally the space available to erect a free standing turbine and building mounted ones often deliver limited output, which academic and industry assessments suggest rarely translates into strong financial returns (although that may change with better technology).
For homes in a more secluded environment it is clear that the value of the property will be linked to the energy saving and profit making capabilities of any wind turbine, perhaps allied to how close it is to the property. Academic evidence suggests this impact is more likely to be neutral or mildly positive where energy savings are clear and visual impact is limited, but it may also come down to the personal choice of any potential buyer.
The Future of Domestic Wind Turbines
After the initial excitement of being able to install wind turbines on a domestic property, things have dampened down with the efficiency and energy production often falling short of expectations, as well as concerns over property prices. There’s no doubt that to be truly viable there needs to be further technological development and better site suitability if it is to become a common sight in urban areas. In the meantime, installing a wind turbine may well affect your property price and, more importantly, those surrounding you.
The perceived reduction in house prices for those living within a couple of miles of an industrial wind farm might, in the future, be softened by a change in attitude as we start to become more attuned to renewable technologies. Recent UK academic reviews suggest that increased familiarity with renewable infrastructure can reduce perceived negative impacts over time. Find out more about the future of wind turbine technologies.
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