Valuation

Arthur Bletchly MRICS posted 12-09-2024 06:14

Hi Sophie

Adapted from Isurv RICS HomeSurvey standard clauses (pre 2019) – Sections C and I

“The property is in an area that could be affected by electromagnetic fields from an electric substation/ overhead pylon (see section I). Some people are concerned about their health effects.

There is high voltage electrical supply equipment close by (describe details including location).

The possible effects of electromagnetic fields have been the subject of media coverage but the Health Protection Agency (HPA), an independent body with responsibility for advising on electromagnetic fields, has concluded that, 'there is no clear evidence of adverse health effects at the levels of electromagnetic fields to which people are normally exposed'. However, because research is continuing into this topic, this view could change.

Public perception of this problem can affect marketability and values. More information can be obtained from www.gov.uk/government/collections/electromagnetic-fields and https://tfw.wales/projects/metro/building-our-metro/overhead-line-electrification . If you want reassurance, a competent person should inspect the home and report to you.”

About 5 years ago I did I survey (ie not a valuation) of a property which had a pylon in the back garden (Droitwich/ Worcester). I analysed the price paid after and posted on LinkedIn. From what I recall it made little difference. Good luck! 

Campbell Ferguson FRICS posted 12-09-2024 08:59

Nordic buyers on Costa del Sol are the most concerned regarding electromagnetic fields from nearby pylons, cables, any type of antena, and substations. Sometimes the latter make noise, so that's understandable. As a surveyor here with Survey Spain, I bought a meter to check the problem. Standing under cables there was a significant reading, but less than 20 metres to the side there was little. I then checking inside the nearest house and found many household appliances gave as high or higher readings. So, if there is a problem with electromagnetic radiation, the first thing that has to be done is to shield all equipment in the house. 

My comment in reports now is that some people have concerns and therefore there will be fewer buyers for a property close to any of these objects, so the value is likely to be less. Quantifying that is much more difficult as there are no stats to back up an opinion, but I'd probably allow between 5 and 10%. That would be as much for them being unsightly as for any electromagnetic effects.

Fiona Fogden RICS Staff posted 12-09-2024 09:21

As Arthur has helpfully said there is a brief mention in an non-current RICS materials, for current guidance: 

Section 4.3 of the new build homes guidance available at https://www.rics.org/content/dam/ricsglobal/documents/standards/valuation_of_individual_new_build_homes.pdf 

The valuer would be expected to note the existence and proximity of the presence of a pylon within their inspection and where possible obtain comparable evidence of properties in similar circumstances in order to make suitable adjustments.

 

And 5.10.3 of the Technical Due diligence for commercial property https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/real-estate-standards/technical-due-diligence-of-commercial-property

electromagnetic fields due to proximity to electrical substations or pylons, mobile phone masts or satellite transmitters

There has been more research since which is on the radar for any future updates to guidance. In particular the London School of Economics (LSE) research in 2023 and their report indicates that houses within 300 metres of new pylons sell for 10% less on average than those more than over 1.5km away. The influence of a pylon decays with distance but can be detected upto about 1.2km, on average houses sell for around 3.6% less within 1.2km than beyond that distance: https://blogs.lse.ac.uk/businessreview/2023/09/25/what-can-house-prices-tell-us-about-the-environmental-costs-of-overhead-power-lines/

Khaled Abdel Baky Candidate posted 12-09-2024 11:34

When valuing a property near a tower and overhead power lines, RICS suggests several considerations. The impact of such infrastructure on property values can be significant due to aesthetic concerns, perceived health risks, and potential restrictions on property use. Here are some of the critical points RICS advises on:

1. Impact on Market Value: Properties close to pylons and overhead cables may reduce market value. Valuers must consider comparable sales data of similar properties with and without such proximity to power lines.
2. Perception and Market Sentiment: The perception of risk associated with living near power lines can influence buyer sentiment and, thus, market value. Valuers should assess whether a stigma is attached to the property and factor this into their valuation.
3. Physical Factors: Any bodily damage or restrictions imposed by the presence of towers and cables, such as limits on building expansions or height restrictions, must be considered.
4. Planning and Regulatory Issues: Local planning regulations may affect property use near pylons and overhead cables, which must be accounted for in the valuation process. (In Egypt, )The safe distances to live next to power lines for ultra-voltage overhead lines are 25 meters, 13 meters for high-voltage overhead lines, and 5 meters for medium-voltage overhead lines and that's according to the Egyptian electricity law).
5. Health Concerns: Although there's no conclusive evidence linking overhead cables to health issues, public concern about potential risks can affect property values. Valuers should know any local or national guidelines regarding health and safety distances from power lines.

Consultation with Specialists: In complex cases, it's imperative for valuers to seek advice from engineers or other specialists. This ensures a comprehensive understanding of the full implications of the overhead cables and pylons on the property, instilling confidence in the thoroughness of the valuation process.

Eng. Khaled Abdel Baky | RICS SPA CANDIDATE | COMFORT VALUATION ASSETS 

Sophie Rogers MRICS posted 12-09-2024 11:34

Thank you to all for your helpful advice. The property I am valuing has a pylon next to the dwelling (approx 3 meters) with the cables running directly overhead, so a little more unusual than commonly having a pylon 'nearby'. There is lots of useful information on the National Grid website regarding living near a pylon but I couldn't find anything on the RICS website using the search function. I shall review the documents you have mentioned.

Many thanks, Sophie

Khaled Abdel Baky Candidate posted 12-09-2024 11:51

Hi Sophie,
You have a unique situation with the property being close to a tower and overhead cables. The proximity and the cables' direct overhead presence could substantially impact the valuation.
Since you couldn't find specific information on the RICS website, I recommend directly contacting RICS for guidance or looking for any RICS-endorsed publications or research papers dealing with such scenarios. Additionally, consulting with an engineer specializing in electrical infrastructure might provide you with detailed insights on any potential risks or regulations associated with such proximity to power lines. This information can be crucial for your valuation report to address any concerns from potential buyers or lenders.
It's essential to record all your efforts, including monitoring the National Grid and other relevant local authority websites for updates or guidelines. This documentation will help solidify your valuation approach and provide a clear rationale for any adjustments made to the tower and cables.
Best regards, [Eng. Khaled Abdel Baky | RICS SPA CANDIDATE | COMFORT VALUATION ASSETS ]

Arthur Bletchly MRICS posted 12-09-2024 11:59

The property I had was 3 Everard Close Worcester (WR2 6ET) in 2017!