We now know that climate change is happening and that the most likely cause is human activity. The predicted rises in global temperatures are likely to have devastating economic, social and environmental effects with the poorest people being the most likely to lose their homes. Despite this house price reduction is often cited as the main concern when renewable energy projects are proposed in the western world.
There has been a number of public opinion polls carried out in the UK and other countries with regard to renewable energy and specifically wind energy. These polls carried out at different stages of the wind farm life generally show support for wind energy. However because wind energy technology is relatively new, there has been very little work carried out in relation to effects on property prices.
A study was however carried out in the US by the Renewable Energy Policy Project (REPP) further to claims from anti-wind energy campaigners that wind turbines were depreciating property prices. REPP’s objective was to determine whether property prices close to wind farms were affected. They looked at 24,300 property transactions in 10 locations over a period of 6 years. For some locations this period included 3 years before the construction of the wind turbines and three years post-construction. The research concluded that there was no evidence to suggest that wind turbines located within a 5 mile radius of property had a detrimental impact and that ironically property prices rose above the regional average. It could be assumed on this basis that wind turbines had a positive affect on value, however a recent UK survey demonstrates that it is more likely to be other factors that influence price variance.
A UK study carried out by Oxford Brookes University in 2007 looked at actual transactions of property sold in 3 locations near wind farms in Cornwall. 919 transactions were studied and a comparison of the mean value of property showed that the value of a terraced house close to a wind farm was lower than a similar house further away. However when the researchers talked to local estate agents it became clear that being close to a wind farm was not the issue and that the terraced properties close to the wind farm were less desirable ex- Ministry of Defence houses. This suggests that other variables have more of an impact than wind turbines.
In summary the evidence base (certainly in the UK) is not sufficient to come to definite conclusion, however what we can say (and indeed the Royal Institute of Chartered Surveyors say) is that from the research carried out so far, wind farms do not appear to have any discernable impact on property prices.
SHERRY
November 16th, 2008
I think we best be getting on with the promise of making America energy independent.Iran just asked OPEC to reduce production by yet another 1.5 million barrels per day.This past year and the record gas prices played a huge part in our economic meltdown and seriously damaged our society.We keep planning to spend BILLIONS on bailouts and stimulus plans.Bail us out of our dependence on foreign oil. Make electric plug in car technology more affordable. It cost the equivalent of 60 cents a gallon to drive an electric plug in car. The electric could be generated from wind or solar. Get with it! Utilize free sources such as wind and solar. Jeff Wilson’s new book The Manhattan Project of 2009 Energy Independence NOW outlines a plan for America to wean itself off oil. We need a plan and we need it now! http://www.themanhattanprojectof2009
Vicky Portwain
November 17th, 2008
Hi Sherry – welcome to the blog. I’ve looked at the manhattan project book reviews and it looks a very interesting read. The OPEC reduction in oil production reminds us that we cannot afford to slip back into a false sense of security when it comes to energy. We have to encourage people to make this investment if we care about future generations.
Timlynn Babitsky
November 17th, 2008
The 81 page REPP Analytical Report was published In May 2003. The Report concluded that for the ten major wind projects analyzed, property values increased faster in the view shed in eight of the ten projects. And, in nine of the ten cases property values increased faster after the project came on line than they did before. Finally, after projects came on-line, property values increased faster in the view shed than they did in the comparable community. Yet, the 2007 UK project Vicky sites here and her commentary above really open questions about the variables being studied. How were other potentially impacting variables controlled in the statistical analysis?
The REPP project researchers acknowledge that their report was not an attempt to explain all the influences on property values. Their analysis “is an empirical review of the changes in property values over time…done solely to determine whether the existing data could be interpreted as supporting the claim that wind development harms property values.”
See the full report here if you are interested: http://www.repp.org/articles/static/1/binaries/wind_online_final.pdf
This is an issue that needs further study on both sides of the argument. I don’t believe there is a definitive answer out there, but the more we investigate property values before and after a wind project is installed, the richer will be our understanding.
Wind Power Handbook » Property Values Blown Away?
November 18th, 2008
[...] her blog post on property values – What is the impact of wind turbines on house values? – Vicky Portwain, director in a wind farm development company in the UK, points us to a 2007 [...]
Cliff Rohde
November 21st, 2008
Vicky: I thought you may have interest in an April 2006 document I recently saw at http://www.howardwind.com/FEIS/3%20Appendices/H%20Property%20Values/2%20Fenner_NY_Property_Value_Study_2006.pdf, submitted in the context of New York’s (USA) Howard Wind project.
It studied home values near the operating Fenner wind project, and like in the UK study you cite, found “an absence of measurable effects of windfarm visibility on property transaction values.”
Cheers,
/cliff
John zemDrierb
December 18th, 2008
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