House prices unaffected by power line, new report finds

A major power line in Scotland has had no adverse impact on house prices since it became operational in 2015, a new report published today (September 23) has found.

The report by BiGGAR Economics has revealed that house prices of properties near the Beauly-Denny electricity transmission line have mirrored local housing markets, where house prices have increased since 2015.

Analysts at BiGGAR Economics investigated the house price trends of properties in close proximity to the Beauly-Denny electricity transmission line and compared this to the housing market trends of the wider local authorities.

The report ‘House Prices: Impact of Beauly-Denny Grid Infrastructure’, commissioned by industry body Scottish Renewables, found that interest rates, the cost of living crisis and the supply of houses were the factors which had most affected house prices in the area studied.

Extending more than 130 miles from Beauly, north of Inverness, to Denny near Falkirk, the Beauly-Denny line passes through the four council areas of Highland, Perth and Kinross, Stirling, and Falkirk, with substations and related grid infrastructure at each end. It is the first 400kV overhead line in the north of Scotland.

BiGGAR Economics is a leading Edinburgh-based consultancy that provides independent economic analysis and advice to organisations across Europe.

Simon Cleary, Energy Transition Director at Biggar Economics, said:

“BiGGAR Economics works with clients in both the residential property and energy transition sectors. Analysis of the Beauly-Denny transmission line represented a great opportunity to understand the relationship between grid infrastructure and housing, a topic that is frequently raised as a potential concern.

“Our analysis found that housing market trends along the Beauly-Denny power line have mirrored those of the wider local authorities. Macroeconomic factors have been the principal drivers of house price growth and the power line has had no noticeable adverse impact on house prices.

“Our analysis includes the opinions of estate agents in the area who have first-hand experience of selling houses along the route. While there may be varying opinions on pylons from both buyers and sellers, there was limited experience of the Beauly-Denny power line having any impact on house prices.”

Stephen McKellar, Head of Grid & Networks at Scottish Renewables, said:

“Since 2015, the Beauly-Denny electricity transmission line has been playing an important role in powering Scotland and the UK with clean, green renewable energy.

“Demand for electricity is set to increase by 50% in the next decade and double by mid-century so effective electricity transmission is crucial if Scotland is to take advantage of its world class renewable energy resources.

“Plans to invest in Scotland’s electricity network will support thousands of new green, high-value jobs while also providing thousands more in new and existing renewable energy projects, from wind farm technicians to civils contractors and hotel staff.

“While it is inevitable electricity infrastructure will be visible, transmission companies always seek to minimise the impact of these projects where possible, so we are pleased that the Biggar Economics report is clear on the Beauly-Denny power line having no impact on house prices or the ability of homeowners to sell properties.”

Notes

• The report ‘House Prices: Impact of Beauly-Denny Grid Infrastructure’, commissioned by industry body Scottish Renewables and produced by BiGGAR Economics with the support of SP Energy Networks and SSEN Transmission, is available on Scottish Renewables' website.
• A report from Scottish Renewables ‘Why investing in electricity transmission infrastructure is a priority for Scotland’ is availabl on its website.