Homeowners and people nearby benefit, though the implications for society are less clear, writes Gabriel Ahlfeldt.  Opinions on conservation areas are split. Proponents would argue that conservation areas protect the visual appearance of historic neighbourhoods, by preventing owners from making changes that would be detrimental to character. Opponents would counter that this form of protection, in practice, means a severe restriction of property rights and, as a result, owners cannot adapt their homes to changing needs. For example, it is difficult to expand the living area after having children, e.g. by means of an attic extension, or to improve the energy efficiency by having new PVC windows. There is also a concern that such restrictions make the property less attractive to potential buyers, depreciating its market value. By the same logic, however, it can also be argued that the prospect of neighbourhood stability that comes with conservation area designation adds to the value of a location and increases the market value of properties located in the area.

Related publications

‘Game of Zones: The Political Economy of Conservation Areas’, Gabriel M. Ahlfeldt, Kristoffer Moeller, Sevrin Waights and Nicolai Wendland, The Economic Journal, Volume 127, Issue 605, October 2017

https://doi.org/10.1111/ecoj.12454

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