Description of financial proxy

This valuation details the household spending on home improvements compared with the average house price impact aggregated across number of affected properties due to an additional runway being built at Heathrow airport.

Context

This was used by nef (new economics foundation) as part of the evaluation of the potential impacts on local communities of an additional runway at Heathrow airport.

Valuation Technique

Cost or income

Value

In 2009, average spending on DIY and home improvements per household per week in the UK is �20.50; For house prices value calculated according to formula for valuing noise disturbance: (Noise Depreciation Index) x (decibel change in noise) x (property price) x (number of properties). For UK, Noise Depreciation Index recommended as 0.68 per cent

Source

Table A1 of the 2009 edition of the Family Spending Survey, Office for National Statistics, http://www.statistics.gov.uk/downloads/theme_social/Family-Spending-2008/FamilySpending2009.pdf

For house prices, formula used to calculate impact of noise disturbance sourced from : Wadud Z (2009) Mitigation Policies: A Systematic Review of Literature on the Valuation of Local Environmental Externalities of Aviation (Omega). Available at www.omega.mmu.ac.uk/Events/Final%20Report%20-%20Environmental%20Externalities%20of%20Aviation.pdf )

Relevant Information

Analysis suggests that loss of well-being as a result of disturbance from different sources, including noise and air pollution, are of a comparable order of magnitude. Generalised blight from living with uncertainty and loss of community fabric may be just as disturbing for local residents as other impacts.

Report Source

Grounded, a new approach to evaluating Runway 3, nef publication

Country

United Kingdom

Date

Data Source