Ultra Low Emission Zones could eventually help to increase house prices in some regions, a property expert has claimed.
Jonathan Rolande, from the National Association of Property Buyers, said: “If ULEZ implementation significantly improves an area, then in the long term it might lead to increased demand and higher prices in adjacent regions. Changes in property values in one area can sometimes have a ripple effect on nearby neighbourhoods
“I don’t expect to see an immediately noticeable impact on prices – not least because prices are already volatile. Also, people buying a home in London are unlikely to be running a car old enough to be caught by the scheme.
“As is so often the case, it is likely to be those renting their property with modest incomes who will be adversely affected although scrappage schemes may help in this regard. Uncertainty is never a good thing and people don’t like change.
“Older residents may well find that they have fewer visitors from out of town as they wish to avoid the Ulez area altogether, even if their vehicle complies.
“As with any new legislation it will be unpopular with many people but once the benefits are seen and it has become ‘the norm’, I suspect people will just accept it.
Outlining the other ways ULEZ could impact the property sector, Mr Rolande said: “Properties located within or near ULEZ zones may become more attractive to potential buyers and renters due to improved air quality and reduced traffic noise. This increased demand could potentially lead to higher property prices in these areas.
“ULEZ rules can encourage the adoption of electric and hybrid vehicles. As charging infrastructure for these vehicles becomes more widespread, properties with easy access to charging points might be seen as more valuable. Plus, as cities invest in ULEZ-related infrastructure improvements, such as better public transportation options, cycling lanes, and pedestrian-friendly zones, neighbourhoods are likely to experience revitalisation. This could attract new businesses, services, and amenities, potentially positively impacting property values.
He added: “On the flip side, homeowners within ULEZ zones might need to consider potential costs related to upgrading their vehicles to comply with emission standards. While this might not directly affect property prices, it could influence the financial situation of residents.”