Fight or flight: £40k hit to house prices near Gatwick

House prices in parts of Surrey and West Sussex could fall by up to £40,000 following the government’s decision to approve a second runway at Gatwick Airport, according to new research.

Analysis by the online estate agency Yopa suggests that homes in Mole Valley, Tandridge and Reigate & Banstead, which sit closest to the airport, are likely to see the sharpest falls once construction begins.

The £2.2 billion privately financed project, due to be completed by 2030, is forecast to cut values by as much as 7.5% in the worst affected areas.

In Mole Valley, where the average home is priced at just over £540,000, that would equate to a reduction of more than £40,000.

Properties in Tandridge could lose about £38,000 and those in Reigate & Banstead about £36,500. Crawley, the town most closely linked to Gatwick, would see a smaller decline of about £24,500.

DAMPENING DEMAND

Yopa’s modelling also suggests that in the near term, before work begins, house prices could dip by about 3% on average as uncertainty around flight paths, air quality and noise dampens demand.

However, the agency predicts a recovery once the runway opens. It estimates that house prices across the “Gatwick Diamond” – which includes Crawley, Horsham, Mid Sussex, Mole Valley, Reigate & Banstead and Tandridge – could rise by 9.5% in the year after completion, driven by job creation and improved transport links.

ECONOMIC BENEFITS

Verona Frankish, Yopa’s chief executive, said: “Homeowners within the Gatwick Diamond will be understandably concerned about the potential impact of a second runway.

“Our analysis suggests that, in some areas, households could see as much as £40,000 wiped from the value of their home.

“The extent of this impact will depend heavily on how the project is managed and proximity to disruption, while strong noise insulation, clear limits on night flights and improved transport links could help to mitigate some of the downside.

“There is a silver lining though, as the delivery of new transport infrastructure often brings long-term economic benefits.”