London School of Economics: property values decline near wind ‘farms’
Large wind farms can knock as much as 12 per cent off the values of homes within a 2km radius, and reduce property prices as far as 14km away, according to research by the London School of Economics. The findings contrast sharply with a report by the Centre for Economics and Business Research (CEBR) in March, which found no negative impact on property prices within a 5km radius of a turbine.
The LSE findings will fan demands by homeowners for compensation when wind farm developments are given the go-ahead. Currently, wind farm operators pay rent on the land they occupy and make contributions to community causes, but are under no legal obligation to compensate homeowners for loss of value.
The report, “Gone with the wind: valuing the visual impacts of wind turbines through house prices”, by Professor Stephen Gibbons, found that “wind farm developments reduce prices in locations where the turbines are visible, relative to where they are not visible, and that the effects are causal”.
For the average sized windfarm, the price reduction is around 5-6 per cent for homes with a visible windfarm within 2km, falling to less than 2 per cent between 2-4km, and to near zero between 8-14km, which is at the limit of likely visibility. In areas close to windfarms, but where the turbines are not visible, the report found there was a small increase (around 2 per cent) in property prices.
Large wind farms cause the greatest decline in property prices. “As might be expected, large visible wind farms have much bigger impacts that extend over a wider area,” said Gibbons. “The largest wind farms (20+ turbines) reduce prices by 12 per cent within 2km, and reduce prices by small amounts right out to 14km (by around 1.5 per cent).”
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