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No ‘social housing effect’ on prices

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Housing developments which contain a mixture of private and social housing are not worth less than solely private developments, research has found.

Many housing developments, particularly in London, have come under criticism by having separate entrances for private and social housing residents.

Developers suggested that house prices would be damaged if the two types of properties were integrated, but new research by NHBC Foundation has found this is not the case.

The study, undertaken in collaboration with the Homes and Communities Agency (HCA), found that high quality design and building standards had a bigger effect on house prices.

The report said divided or single tenure developments should now become a thing of the past, with a mix of residents the best form of development.

Developments which segregate private and social housing were found to have higher rates of negative feelings and division between residents.

Nick Raynsford, chairman of the NHBC Foundation, said developers were wrong to separate different types of housing.

“The move to promote integrated tenure over the past two decades is entirely understandable and appropriate,” he said.

“But inevitably questions have been raised about how this is best achieved and how to respond to potential problems. This report reviews the evidence about tenure integration in new housing developments and provides a very useful summary covering a range of different themes. Most of the conclusions are encouraging.

“The evidence does not suggest that there are immovable barriers to successful mixed-tenure developments, and demonstrates that fears that such developments will threaten the value of owner-occupied housing are not substantiated. They do point to the need for careful planning and good design to ensure the creation of successful communities and they reinforce the case for high-quality management.”

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