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Tram line construction boosts house prices

Tram line construction boosts house prices

The impact constructing new tram lines has on house prices has been outlined by a new report from Lloyds Bank.

It has revealed half of homes close to tram stops in Manchester, Birmingham, Nottingham, London and Edinburgh have seen their values rise faster than the city average, with homes in Manchester, Edinburgh and Birmingham demonstrating a 12 per cent premium over the first two years after a new station has opened.

This suggests that the construction of more new lines could have a further impact on local house prices.

Examples of expansion plans include the Midland Metro, where new planned lines include westward extensions to Brierley Hill and Dudley, an eastward line into the 'eastside' area of Birmingham city centre travelling out as far as Solihull, and further expansion in Wolverhampton.

It is not just tram lines that are pushing up prices, with homes near the new Crossrail line rising by 22 per cent in the past two years in anticipation of the service, which starts later this year. A similar effect may be felt if Crossrail 2 goes ahead.

Indeed, with proximity to stations bringing a price premium, it is likely that housebuilding firms will target areas near stations. Examples of new developments include apartments built in the Wythenshawe area of Manchester near several of the stops on the new Airport line there.

Mortgage products director at Lloyds Andy 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."

Manchester's next line will be westwards to the Trafford centre, while Edinburgh is planning to expand its tram network to Leith and Newhaven.

Parts of Glasgow may get a property price boost if SNP pledges before the recent local elections to expand the Subway are fulfilled. The network has never yet been extended, despite being established as long ago as 1896.

Image: iStock


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