Buying & selling

Does living next to a busy road lower the value of a house?

5 min read · By Ian Broom, AMIOA (Associate Member, Institute of Acoustics)

Last reviewed:

Does living next to a busy road lower the value of a house in the UK?

Usually a little, on average: studies of home sales mostly find that houses exposed to more road noise tend to sell for somewhat less, though not every study agrees. They differ on the size of the effect, and none can say what a particular home would fetch.

Researchers measure this with hedonic pricing, a statistical method that splits a sale price into the parts attributable to a home's features, such as bedrooms, garden size, location and noise.

Is there a set percentage off the price per decibel?

No. Studies report a percentage change in price per decibel, and the numbers differ. Day, Bateman and Lake (2007) studied about 10,848 Birmingham transactions from 1997. In six of the eight market segments road noise had a negative effect of between 0.18% and 0.55% per decibel, and five of those six were statistically significant, while two lower-income segments showed positive but statistically insignificant effects. Lake and colleagues (2000) studied over 3,500 Glasgow sales and found price depressed by about 0.2% per decibel.

A review of the literature (cited by Bristow and Thanos 2015) reports a very wide range, from 0.08% to 2.2% per decibel. The two UK studies we read sit at roughly 0.2% to 0.55% per decibel in the segments and areas where noise lowered prices, but that summarises two studies and is not a formula for your street. Applying one percentage to one home and treating the result as a valuation would be unsound.

At what point does road noise start to affect the price?

We have not found evidence that settles this, so we would not trust a claim that price effects begin only above one particular level.

How much noise matters to one home also depends on the home. A road-facing garden, single glazing or an exposed main bedroom make a given level matter more, whereas living space shielded by orientation, a barrier or intervening buildings may be less affected by the same nearby road. That is why a blanket percentage per decibel is unreliable for a single home.

Do all studies find that noise lowers prices?

No. Blanco and Flindell (2011) compared residential areas with similarly high road noise and report that the effect of noise on prices differed significantly between them; in one area prices rose with noise, which the authors describe as possibly misleading. Guijarro (2019), a Madrid case study that summarises their work, reports that road noise had a negative effect on flats in London (407 flats) and no significant effect in Birmingham (226), but a positive one in Sutton Coldfield (86), where it says the small sample may partly explain the result.

Two further limits apply. The Birmingham sales are from 1997, and we did not find a recent national study, although we did not search exhaustively. And the evidence that buyers pay a premium for quiet is thinner than the evidence of a discount for noise.

Are the government's road noise figures about house prices?

No. The figures often quoted come from Defra's guidance Noise pollution: economic analysis (GOV.UK, first published 2013 and updated 2014). Its Table 1, in 2014 prices, gives a value for road noise per household for a 1 dB change that rises from about £11.28 at 45 to 46 dB to about £195.03 at 80 to 81 dB.

The Defra page presents these as valuations of noise impacts for appraisal. It does not present them as sale-price discounts or as what a home should sell for. The page also says the values may not be suitable where a decision is likely to have a substantial effect on noise, and it makes no statement about property prices.

Table 1 uses a daytime noise measure. Its Note 1 suggests using the daytime indicator as a rough stand-in for Lden where data are lacking (for example Lden = LAeq,16h), and says this cannot be used for night noise. We would treat matching its bands to a noise-map Lden figure as approximate. What the table does show is a pattern in valuations, with a decibel counting for more when the starting level is already high. It is not a pattern in sale prices.

Can a noise report help me negotiate the price?

It can give you facts for a conversation, but no study we found has tested whether showing one changes the price a seller accepts. Our guide on whether a noise report can help you negotiate sets out what the evidence does and does not show, and what to ask the seller or estate agent about noise lists questions to put before you offer.

I'm selling a house on a busy road: what should I do about noise?

Know your own exposure before you market the home, and be ready to answer questions about noise plainly. The standard seller's property form asks about disputes with neighbours rather than road or rail noise, and our guide to selling a house on a noisy road looks at that gap. We do not give legal advice, so ask your solicitor what you should say in your own sale.

A modelled estimate and a note of what has been done about noise, such as glazing, vents or a fence, give you something specific to say. We cannot say that this affects the price you get, because no study we found tests it.

What we do not know

The studies are averages for groups of sales, not forecasts for one house. The 0.08% to 2.2% range comes from a review of earlier work, and we have not read the full text of the Glasgow or Blanco and Flindell papers; the area-by-area findings come from Guijarro's summary.

Any estimate we produce is modelled, not measured, and it is not a valuation.

How can I check my own address?

Our address check gives a modelled, plain-language estimate of road and rail noise at an address. It is not a measurement, and it does not tell you what a home is worth. It can help you decide which rooms and which times of day to look at more closely.

Common questions

Does a busy road lower house prices in the UK?

Usually a little, on average. Studies mostly find that noisier roads go with lower prices, though not every study agrees, and none can say what a particular home would fetch.

How much does road noise reduce a house price per decibel?

The two UK studies we read report roughly 0.2% to 0.55% per decibel in the segments and areas where noise lowered prices. A review of the literature (cited by Bristow and Thanos 2015) reports 0.08% to 2.2%. The size varies by place and market.

Are Defra's noise valuation figures house-price discounts?

No. Defra presents them as valuations of noise impacts for appraisal in government cost-benefit work. It does not present them as sale-price discounts or as what a home should sell for.

Do all studies find that noise lowers prices?

No. Blanco and Flindell (2011) found significantly different effects in three areas with similarly high road noise. Guijarro (2019), summarising their work, reports a negative effect in London, none significant in Birmingham and a positive one in Sutton Coldfield, where the sample was small.

Can I use a noise report to negotiate the price?

No study we found has tested whether showing a noise report changes the price a seller accepts, so use it to ask better questions, not as a promised discount.

Sources

  1. Defra, Noise pollution: economic analysis, GOV.UK, first published 9 April 2013, updated 19 December 2014 (Table 1)
  2. Day, Bateman and Lake, Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model, Environmental and Resource Economics 37, 2007 (Birmingham)
  3. Lake, Lovett, Bateman and Day, Improving land compensation procedures via GIS and hedonic pricing, 2000 (Glasgow; summary page)
  4. Bristow and Thanos, What do hedonic studies of the costs of road traffic noise nuisance tell us?, Journal of the Acoustical Society of America 138(3), 2015
  5. Blanco and Flindell, Property prices in urban areas affected by road traffic noise, Applied Acoustics 72(4), 2011 (University of Southampton record: abstract only)
  6. Guijarro, Assessing the Impact of Road Traffic Externalities on Residential Price Values: A Case Study in Madrid, Spain, International Journal of Environmental Research and Public Health 16(24):5149, 2019 (summarises Blanco and Flindell; source for the flat counts and the direction of effects in each area)

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