House Prices and Crime

How does crime affect house prices where you live? It may surprise you to know that lower level crime such as vandalism and graffiti has the largest negative effect on house prices.

It could be argued that neighbourhood crime costs home-owners more than burglary. A higher level of burglary does nothing to depress prices, and the financial impact is often offset by home insurance. With a 10% reduction in criminal damage adding almost 2% to the value of a house, neighbourhood crime has a tangible cost implication.

The incidence of this type of crime, categorised by the police as criminal damage, is higher near public houses and other places of alcohol consumption. Living near such establishments tends to depress house prices.

Find out more in this paper from the London School of Economics and Political Science: Urban property crime erodes the value of your home