New tram routes boost house prices

House prices have risen in areas near improved transport links according to research by Lloyds Bank – something for property investors to consider.

New tram routes boost house prices

Property prices along tram routes in Manchester, Birmingham and Edinburgh grew by an average of 12% in their first two years of opening.

In Manchester, the residential area served by the South Manchester line has seen house prices grow by 343% since 1995 compared to an increase of 276% in the city as a whole.

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 [tram] 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.”

The research by Lloyds Bank looked also to the impact of future transport regeneration with Crossrail, with properties along the future Elizabeth Line already increasing by 22% in the past two years.

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