Can You Face Loss Of Property Value Due To Development?

If you are a homeowner who is wondering whether the development in your area will cause you a loss of your property value, you will find the answer to your question in the following blog post. Here, we will discuss whether developmental work negatively affects property values and explore the options that homeowners can avail if they face a loss of their property value due to development.

Can You Face Loss Of Property Value Due To Development?

Yes, you can face loss of property value due to development. If you are a homeowner, you must know that development can result in a number of impacts on property values. Homeowners may face loss of their property’s value if there is development in their area. Additionally, the type, scale and location of development can all have an impact on property values.

Negative impacts on property values can be caused by a number of factors, such as: 

  • noise 
  • traffic 
  • light pollution 
  • poor air quality
  • loss of privacy

Developmental work can also have negative impacts on property value, particularly when the development is considered to be a nuisance or detracts from the area’s appeal. 

For example, the construction of a busy road or railway line near a property can lead to increased noise and pollution, which can reduce the desirability of the area and decrease demand for properties. 

Additionally, the construction of high-density housing in a previously low-density area can also negatively impact property values.

This is the reason why the Government has put in place a number of measures to try to reduce the negative impacts of development on property values. These include the publication of planning policy guidance, the setting of minimum standards for development and the granting of planning permission only if these standards are met.

What Should You Do If You Face Loss Of Property Value Due To Development?

If homeowners are facing a loss of property value due to developmental work in the surrounding area, there are several steps they can take to protect their interests and mitigate their losses. Here are some potential options:

  • Seek Professional Advice: Homeowners can consult with property professionals such as estate agents, surveyors, and property lawyers to assess the extent of the impact of the development on their property and to discuss potential legal or financial options. Sometimes, one may be able to get free legal advice.
  • Consider a Property Valuation: A property valuation can provide an accurate assessment of the current market value of the property, taking into account the impact of the developmental work on the local area.
  • Negotiate with Developers: Homeowners can also consider negotiating with the developers responsible for the work to try to reach a mutually acceptable agreement. This may include seeking compensation or additional benefits in exchange for the impact on their property.
  • Explore Legal Options:  If negotiations are unsuccessful, homeowners may wish to explore legal options such as challenging planning permission or seeking compensation through a compulsory purchase order.

Can You Complain About Loss Of Property Value Due To Development?

Yes, homeowners can make a complaint about the loss of their property’s value if there is development in their area. If a homeowner feels like the value of their property has been adversely affected by development, they can submit a formal complaint to the local council responsible for the development. 

The complaint should include proof of how the value of the property has been affected, and the council will then investigate the complaint and decide on a course of action. 

Usually, the homeowner will be offered compensation if the council accept their complaint. However, it is important to keep in mind that not all complaints will be successful. 

The homeowner must be able to prove that the development directly affected the value of their property before any compensation can be offered.

Can You Get Compensation For Loss Of Property Value Due To Development?

Yes, homeowners are legally entitled to compensation if their property’s value is adversely affected by development. The amount of compensation given depends on the extent to which the development has affected the property’s value.

The Government has established a number of schemes to help homeowners in the UK. These are the Economic Viability Scheme, the Infrastructure Levy Scheme, the Community Infrastructure Levy Scheme, and the Section 106 agreement. These schemes aim to make sure that developers are held accountable and homeowners get the compensation they deserve.

However, it is important to note that homeowners may not be eligible for compensation in every instance. The most common criteria for eligibility include: 

  • having owned the property for at least two years before the development started 
  • the development has had a ‘major’ effect on the property’s value 
  • not being able to recover from any losses 


It is quite common for homeowners to experience a loss of their property value when there is developmental work being carried out in the surrounding area. Overall, the best approach for homeowners facing a loss of property value due to developmental work will depend on their individual circumstances. Seeking professional advice and exploring all available options can help homeowners protect their interests and minimise any potential losses.


Compensation for public developments and building work – Shelter Scotland

Viability – GOV.UK

Technical consultation on the Infrastructure Levy – GOV.UK

Community Infrastructure Levy – GOV.UK