House prices have grown more in locations close to public transport improvements, particularly trams, new research has revealed.
The effect an improved transport network has on house prices is especially noticeable in cities like Edinburgh, Manchester, Birmingham and Nottingham. On average, house prices increased by 12% in these cities during the first two years of opening the new lines.
The research was put together by Lloyds Bank and whilst taking a closer look at London’s house prices it also focused on tram routes across Greater Manchester.
The report finds that house prices along Greater Manchester’s tram route saw an increase of 11% between 2013 and 2015, which is shortly after a big part of the network first opened. This increase is almost double the 6% rise which was recorded during the two years prior.
Birmingham is another city that saw dramatic house price changes come hand in hand with a growing tram network. Midland Metro operates between Birmingham and Wolverhampton and first opened in 1999. In the two years following its opening, house prices in areas served by the new line saw an increase of 25%, from $42,253 to £52,720.
The report also suggests that this effect continues well past the first couple of years after opening a new line. Especially in Birmingham. Average house prices along the line have grown to £130,041 in 2016, representing an increase of 208%. Birmingham as whole has only seen an increase of 175% over the same period of time.
Lloyds Bank mortgage products director, Andrew Mason, 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. An excellent tram system can stimulate inward investment for the local economy, unlock previously hard to reach sites for development and make it easier for people to move around the city.”