C O N T E X T 1 2 6 : S E P T E M B E R 2 0 1 2 41 towards the centre was estimated to be approximately double that at the edge, controlling for other factors.This suggests that people value being surrounded by a greater density of heritage. There is also a premium (albeit less) for properties outside a conservation area being more closely located to a conservation area boundary, suggesting people value proximity to conservation areas. This premium was found to decline from the boundary of the areas, becoming nil at around 500–700m distance. The effect on prices By examining house prices in conservation areas before and after the conservation area designation, and comparing them with prices in benchmark areas, the research analysed how the act of designation itself affects prices. It found that designating a conservation area did not increase or decrease house prices. This suggests that conservation area designation is recognising places that people already value, and that the act of designating a conservation area does not impose significant costs on residents. As detailed house price data is available only since 1995, it was only feasible to examine designations that had taken place since then. A possible implication in interpreting the findings is that if conservation area designation does affect local house prices it does this over a longer time horizon than 15 years.This may be due to changes in the built environment relating to conservation area status (relative to an area remaining undesignated) taking place over several decades. The perceptions of residents To supplement the statistical analysis of house prices, an assessment of people’s perceptions of conservation areas and their planning regimes was also undertaken. This involved a survey of residents in 10 conservation areas in and around London, combined with interviews of local planning officers.2 When residents were asked about their views on planning regulations, there was found to be no universal negative attitude towards them. Home owners who had applied for permission were generally more likely to have positive attitudes toward planning controls than those who had not applied. Especially in areas with higher house prices and low deprivation, strong planning control was often linked back to protecting the coherence of a neighbourhood. Relationships between attitudes and prices The higher residents perceived areas’ distinctiveness and attractiveness, the higher were found to be property premia. Areas where residents expressed more concern about planning being a constraint tended to be those with lower property premia. Engagement with the planning system Most residents who had objected to a neighbour’s planning application did so due to loss of a view, loss of light or loss of privacy. However, in the areas with higher house prices there was a significant proportion who also mentioned loss of local character as a reason for objection. The role amenity societies played in objections and generalised neighbourhood pressure against ‘inappropriate’ development was more frequently discussed in conservation areas with higher house prices. The effects on new build The majority of conservation area residents did not believe that being in a conservation area had helped improve the quality of new build. By contrast planning officers interviewed reported that the increased level of control and regulation in conservation areas allowed them to negotiate a better overall quality of new build. It was also sometimes stated that the perception of stringent regulations in conservation areas helped to engender better renovations and extensions. Conclusions The research found that people valued conservation areas, as shown by their being prepared to pay a premium to live there, even after adjusting for the many other factors that affect house prices.The size of the premium for living in a conservation area depends on its characteristics such as its size and whether it is at risk. People also appear to value being surrounded by a greater density of heritage, as shown by the conservation area premium being higher for properties sold closer to the centre of a conservation area. Living near to a conservation area is also valued, as shown by the existence of a premium in the surrounding areas. The research found that, in general, there was no universally negative attitude towards conservation areas’ planning regimes.This was supported by two pieces of evidence, that the act of designating a conservation area was not found to reduce house prices, and the qualitative evidence that residents did not perceive the planning regime as overly burdensome. Although the research has demonstrated that people value conservation areas, it should not be considered to exhaust their value. As the research is only examining the value homeowners get from living in, or near to, a conservation area, it does not capture the enjoyment others (alive or still to come) get from being able to walk through an area with historic or architectural character. John Davies is an economist with English Heritage. 1 Ahlfeldt, G, Holman, N, Wendland, N, (2012), ‘An assessment of the effects of conservation areas on value’ 2 The Conservation areas were in Hackney: De Beauvoir, St Marks; Kensington and Chelsea: Ladbroke, Courtfields; Ealing: Brentham Gardens; Richmond: Sheen Road, St Matthias; Haringey: Bowes Park; and Gravesham: Riverside and Overcliffe.
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