Easy accessibility has always been one of the prime factors taken into consideration when individuals contemplate buying a new home. Therefore, it comes as no surprise that homes situated in areas which are easily reachable thanks to superior public transport arrangements are often premium priced and in great demand. However, there now seems to be research available that proves this theory. A report compiled by Lloyds Bank based on London’s housing sector prices, focused on the impact new tram routes across cities like Manchester and Birmingham had on property rates.
The research indicated that an improved transport network had a direct and significant impact on home prices with property rates along tram routes in Manchester, Birmingham and Edinburgh growing by an average of 12% in their first two years of opening of the new lines. The southern part of Manchester has been a beneficiary of being served by the tram lines since 1995, as property prices in the area have seen mammoth growth of 343% in the past 22 years as compared to an increase of 276% in the city as a whole.
A more detailed analysis of the report reveals that the average house price along the Greater Manchester tram routes grew by an average of 11% from £134,266 in 2013 to £149,511 in 2015 in the two years since many of the lines were inaugurated, almost double the 6% increase recorded in the two years previously.
Andrew Mason, Lloyds Bank mortgage products director, said: “A new and modern transport system is potentially a great catalyst to urban regeneration and can be a game changer for cities investing in improved links. These are important factors for the housing market, and we can see these routes have helped boost increases in property values”
“Many properties close to tram links have recorded an outperformance in house price growth compared to the city as whole. Having a tram stop on your doorstep can make a lot of difference.” He added.
To be fair, a considerably improved public transportation structure is not the only catalyst behind Manchester’s rising property prices. The city’s exceptional job opportunities and thriving culture have made it UK’s biggest property hotspots at the moment. Indeed, Manchester has been in the news frequently in recent times leading the way when it comes to growth in property rates. Manchester recorded an 8.4% price rise in the year to April 2017, the highest among all cities in the UK.
Matthew Jay, Managing Partner at Alliance Investments was available for comment “The transformed transportation system has definitely accentuated Manchester’s property sector. We have observed substantial price growth in the past couple of years since many of the new tram routes started. This is all adding up to what we believe is an exciting time for the city’s housing sector. We are certain that the boom is here to last, and investing in the market will prove to be an extremely profitable endeavor.”