The effect of traffic congestion on property values in Portsmouth

Bowhill, Philip (2008) The effect of traffic congestion on property values in Portsmouth. BSc dissertation, University of Portsmouth.

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    Abstract

    House prices are affected by a number of structural, physical and environmental factors. Although a range of studies have successfully quantified the impact of price on tangible variables such as the house structure, relatively little work has been undertaken to quantify the impact of intangibles such as traffic volume or congestion. Given that traffic flows and congestion are getting worse in the U.K., this seemed a worthy area for further investigation. This research report will try to identify whether traffic flow and congestion has an affect on property values in Portsmouth city. This is a geographical location, which suffers considerable traffic flow, congestion and parking problems on a daily basis. A mixture of quantitative and qualitative methods have been used. House prices for terraced houses over recent years have been collected for a number of key roads in chosen locations of the city, with these prices indexed at 2007 levels. These roads have been selected as appropriate for the study on the basis of feedback from estate agents and the Transport Department at Portsmouth City Council. The use of statistical techniques to assess the impact of traffic congestion and traffic flow including the Hedonic Pricing and Repeat sales method has been investigated. The quantitative analysis has been supported through a qualitative approach that has included the use of interviews and questionnaires with estate agents based in the city. This has informed the study by providing an assessment of the views of estate agents on the impact of traffic flow, congestion and other intangible factors on house prices. Key areas where traffic flow, congestion and related traffic problems, were also identified, with this informing the data collection process on houses. The quantitative analysis did not provide conclusive evidence on the influence on house prices. A number of possible reasons have been identified including low impact of intangibles during periods of high demand and problems with providing usable data sets due to insufficient data collected for some roads and possible deficiencies in the pricing index used. The latter problems cast doubt on the potential use of sophisticated statistical analysis tools such as hedonic pricing and repeat sales methods. Despite the quantitative results being inconclusive, interviews with estate agents did support the view that traffic flow and congestion did have a major impact on property values. Estate agents not only gave their general opinion, they also provided case examples. It was suggested that the impact of intangible factors related to traffic can vary according to economic conditions. During periods of high sales demand and low availability of property, as has existed in recent years, the impact may be less than during periods of low demand and higher supply as is currently occurring.

    Item Type: Dissertation
    Departments/Research Groups: ?? EDAM ??
    Depositing User: Jane Polwin
    Date Deposited: 20 Jan 2011 12:49
    Last Modified: 28 Jan 2015 11:16
    URI: http://eprints.port.ac.uk/id/eprint/930

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