Improving land compensation procedures via GIS and hedonic pricing

Iain R. Lake, Andrew A. Lovett, Ian J. Bateman, Brett H. Day

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)

Abstract

One of the results of new road construction is often a reduction in the price of nearby properties. In the United Kingdom property owners can be compensated for this loss through the Land Compensation Act. The appropriate level of compensation is currently determined by valuers and is mainly based upon their expertise and skill. This study aims to determine what the correct level of compensation should be. It has been specifically designed to fulfil the requirements of current legislation and can be integrated into existing compensation procedures. This was achieved through a hedonic pricing study that relates current property prices to a wide range of factors. These variables include the structure, neighbourhood, accessibility, and environment of the property, in addition to the impact of nearby roads. These were all created through GIS and large-scale digital data. The study, which is based on over 3500 property sales in Glasgow, Scotland, suggests that property prices were depressed by 0.202% for each decibel increase in road noise. This result has enabled a more streamlined compensation procedure to be developed and demonstrates that compensation claims can be estimated at the road-development stage. This would allow any compensation claims to be assessed prior to road construction and inform the design of noise-reduction measures.
Original languageEnglish
Pages (from-to)681-696
Number of pages16
JournalEnvironment and Planning C
Volume18
Issue number6
DOIs
Publication statusPublished - 2000

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