Low Traffic Neighbourhoods are good … at least for ...

Buy to let landlords with properties inside controversial ‘Low Traffic Neighbourhoods’ or LTNs may be in for a windfall.

That’s because new research suggests that in London at least, LTNs add value to properties.

But lettings agency Benham and Reeves, which conducted the research, says that while LTNs may be bringing a boost to house prices within them, the additional strain on surrounding roads is a deterrent to many homebuyers.

House prices within the 20 LTNs analysed by the agency come in at £614,863 which 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 with the average some 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 Enfield, while Arsenal and Highbury Fields (26%), Colliers Wood (18%) and Wanstead Park (18%) are also home to some of the highest premiums.

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.

He says: “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 for 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.”

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