What impact will large new estates have on other house prices in the area?

[coffeerevelsrule]

Just curious.

I live in an inexpensive area of England but in a niceish small town that locally is quite expensive in relation to places nearby, though not massively so. Obviously still way cheaper than the south east. My house is a 4 bed detached that was built by the previous owner 30 years ago and is therefore quite unique. Not in an odd way in that it's a pretty conventional home but is on a street of different houses that was bombed in the war so some Victorian places, some 70s bungalows and then my place. I bought it for £140k about 10 years ago - it was way cheaper than other similar places we looked at (by way I mean about £40-50k) as it was sold as a part exchange through a building company.

There are old industrial buildings in my town that are now being demolished and new builds are springing up. I've never been a fan of new builds, but these seem quite nice and they have tried to keep some of the character of the old buildings that have been demolished. They seem quite high-end with most I have looked at, many of which are smaller than mine, going for £200-£300k.

Do you think these new estates will have much of an impact of the value of mine? Online it seems mine is now valued at around £180-190k but I know that's a bit of a guestimate. I divorced around 7 years ago and value then was about £160k but I have since redone bathroom, attic room and kitchen and some other cosmetic stuff.

Doesn't matter really but seeing all these new house springing up makes me wonder what, if any, the impact will be on me.

Are the new estates triggering more development/services such as dentists and doctors, or expanding the local hospital or building big out of town supermarkets?
If all it does is add to traffic, probably not much.

Some of it is going to depend on the supply of housing. If your area is short of housing it will probably make little difference, however if there is an over supply it will probably drop prices.

Impossible to say.

bear in mind we are on the cliff edge of a potential market crash with a 50/50 chance of it happening.

Im personally not a fan of new build estates, and some of the additional complications they bring, in particular build quality issues that some of my friends have been through. I know not all property builders are the same, but the household names, can usually be lumped In the same category. They also tend to build to a price, so for instance I know of one company who use laborers to do the electrics, which then get signed off by the 1 full qualified electrician (JIB graded) they have on a site that day of the week. Surprised there’s not more incidents tbh.

I am a fan of period features properties, but those building have their own complications too.

So it all comes back to location, structure of the property and demand. things like a new kitchen, can put some buyers off, but will make it more appealling to others on a stretched budget.

Personally, I’d sit tight for the next 3-5 years when whatever crash, bump or sigh of relief after this current crisis is in the rear view mirror and look what’s happening in your own street to gauge prices.

This is the worst property advice ever. People who have held off buying have been waiting for crash since the dawn of time and it never happens. They then keep waiting for this crash wishing they had bought sooner, but still kidding themselves that a property price crash will happen.

I agree.

So you don’t recall the two crashes in recent memory?

https://www.savills.co.uk/landing-pages/a-brief-history-of-the-uk-housing-market-1952-2022.aspx

Either way - I’d still argue that with where we are now in the cycle - an accurate valuation now would be hard to predict.

It’s all v local and v specific.

Ask anyone who has bought an apartment in central London after 2015 what has happened to their investment.

Our large village, in recent years, has had two new build estates wrapped around it in recent years. These have caused an increase in the original village houses, the estate agents make a point of ‘in old village’ in their opening sentences.

New build will command a higher price (just like new cars do). In the medium term, the prices may fall if it leads to an oversupply. Traffic levels doesn’t seem to affect house prices, the new builds right next to the dual carriageway in my city aren’t any cheaper than the ones further away.

I bought my first house in 1973, the following year it was worth less even though we had installed a kitchen, treated the rising damp, had it rewired and new windows. Timing is everything and I haven't got the knack.