The Impact of Transport Policy on Residential Location

Abstract

AbstractThe objectives of this chapter are to assess the extent to which transport impacts on residential location decisions and hence on housing occupancy rates and house prices and to assess the extent to which transport policy decisions (such as road user charging, changes to fuel duties or the provision of light rapid transit systems) affect housing markets. This was achieved by undertaking two Stated Preference (SP) experiments in the Greater Oxford area. The aim of these experiments was to determine the key transport and location factors that householders take into account when determining their residential location. These surveys suggested that householders place high values on transport times and costs but also value low density developments, access to high quality schools, low noise levels and developments in small towns/rural areas. Stated Preference data was used to develop a hedonic pricing (HP) model which suggested much lower impacts of travel time to work, housing density and school quality on house prices than the SP choice model. Nonetheless, validation tests indicated that the HP model provided more reliable forecasts of house prices than the SP model. The HP model was used to provide preliminary forecasts of the impact of transport improvements on house prices in the Greater Oxford area.KeywordsHouse PriceHousing MarketStated PreferenceResidential LocationHedonic PriceThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.