"LTNs aren’t without their drawbacks. Not only have they been criticised for hindering access to emergency services, but it’s clear that they have a negative impact on the areas surrounding them"
- Marc von Grundherr - Benham and Reeves
The latest research by London lettings and estate agent, Benham and Reeves, has revealed that while London’s Low Traffic Neighbourhoods may be bringing a boost to house prices for homeowners who live within them, the additional strain they place on surrounding roads with respect to increased traffic congestion is a deterrent to many homebuyers.
Benham and Reeves analysed current market data, looking at the average house price for homes found within the boundaries of 20 LTN’s across London, before comparing these property prices to the average house price of the wider borough in which they are located.
What are LTNs?
LTNs are residential areas where traffic flow is restricted through either one-way systems, road closures or other traffic calming measures to encourage greener living through walking, cycling or public transport. The idea is to stop road traffic utilising these neighbourhoods as shortcuts to avoid congestion, thus reducing congestion to certain routes, creating safer streets and enhancing air quality.
Homes in LTNs command house price premiums as high as 108%
The results show that, on average, house prices within the 20 LTNs analysed by Benham and Reeves come in at £614,863 in the current market. This is some 9% higher than the current average London house price of £502,690.
LTNs in both the North and West of London command the highest house price premium on average at 14%, falling to 7% in South London and just 1% in the East.
The West London LTN of South Chiswick commands the highest premium of all LTNs analysed by Benham and Reeves, with the average house price within its boundary coming in 108% higher than the wider borough average of Hounslow.
Within the LTN of Fox Lane in North London, the average house price sits some 42% above the wider average for the borough of Enfield, while Arsenal and Highbury Fields (26%), Colliers Wood (18%) and Wanstead Park (18%) are also home to some of the highest LTN house price premiums in the capital.
However, while living within an LTN clearly has a positive impact on property prices, those within the surrounding area are unlikely to share the same enthusiasm, as increased congestion proves problematic when it comes to enticing potential buyers, as Marc von Grundherr of Benham and Reeves explains.
Director of Benham and Reeves, Marc von Grundherr, commented: “It’s clear that the implementation of LTNs has had a positive impact on local property prices with many of them commanding a very healthy house price premium versus the wider boroughs in which they are found.
"Less traffic congestion, safer roads and cleaner air are all strong selling points for potential buyers, particularly in the capital where they are arguably some of the most pressing issues faced by Londoners.
"However, LTNs aren’t without their drawbacks. Not only have they been criticised for hindering access to emergency services, but it’s clear that they have a negative impact on the areas surrounding them, bringing an increased level of traffic congestion to the detriment of those residents not lucky enough to live within a nearby LTN.
"This arguably eradicates the intended benefit, as while it reduces traffic and the chance of accidents while improving air quality in one area, it actually worsens it in another.
"For those sellers living outside of an LTN boundary, it’s simply another obstacle faced when they come to sell, as potential buyers are put off by the far higher weight of traffic.”
