Although the government’s decision to approve a second runway at Gatwick Airport could see house prices in the surrounding area closest to the airport fall by as much as £40,000, the long-term benefits could bring a house price boost of 9.5% on average, according to Yopa.

Before construction begins during the initial planning stages, homes could typically see a small fall of between 1% and 5%, due to buyer uncertainty and concerns around future noise and environmental disruption.

However, once construction is underway and the runway becomes operational, the impacts may be far more severe for homes closest to the airport or under new flight paths, which could result in house prices falling by as much as -7.5% in affected areas. 

Verona Frankish, CEO of Yopa, said: “Homeowners within the Gatwick Diamond will be understandably concerned about the potential impact of a second runway on property values across the local market. 

“The extent of this impact will depend heavily on how the project is managed and proximity to disruption, while strong noise insulation, clear limits on night flights, and improved transport links could help to mitigate some of the downside.

“There is a silver lining though, as the delivery of new transport infrastructure often brings long-term economic benefits and this tends to filter down to an uplift in house prices in the years that follow the completion of such a sizeable project…the Gatwick Diamond could well be one area of the market to watch over the coming years.”

The Gatwick Diamond includes the cluster of local authorities surrounding Gatwick Airport, namely Crawley, Reigate and Banstead, Horsham, Mid Sussex, Mole Valley and Tandridge.