The latest research from Move with Us found that buyers are most interested in a property with good transport links, with 48 per cent of estate agents citing this as a top priority for their customers. While prospective homeowners are apparently willing to compromise on other elements, such as the size of a property’s garden and the number of bedrooms, good transport links are deemed as essential.
Further confirming the importance of public transport, 9 per cent of the estate agents surveyed by Move with Us cited poor transport links as one of the top factors that can devalue a home.
How much value can good transport links add to property values?
Good transport links add a number of potential benefits to homeowners, such as making commuting much easier. However, one of the main benefits good transport links can give homeowners is a noticeable increase in the value of their property. This is not a one off coincidence, but a trend that has been reported in a number of major cities.
Metrolink is a tram system that has been operating in Greater Manchester since 1992. What began as one line between Bury Interchange and Victoria Station has since grown to become the largest light rail system in the UK, with 92 stops along 60 miles of track.
In 2008, work began on a new project, aimed at expanding the current network to cover even more of Greater Manchester. As the network expanded, areas with new stops started to see noticeable increases in property sales.
Research from JMW Solicitors LLP found that while house sales across Manchester saw a 15 per cent increase between 2013 and 2014, sales grew considerably more in areas now connected via Metrolink. Leading the way was Failsworth, which saw a 225 per cent year-on-year rise in sales following the opening of its Metrolink station. Other areas which saw impressive growth included Prestwich (200 per cent), Wythenshawe (200 per cent), Didsbury (178 per cent) and Sale (147 per cent).
As well as an increase in the number of sales, areas with new Metrolink stations also experienced an increase in property values. Ashton-under-Lyne, which saw the opening of a new station in October 2013, saw average property values jump by 50 per cent* in the following two months.
(*Figure according to Rightmove market trend data)
NET, or Nottingham Express Transit is a tram system that first opened in Nottingham in 2004, with a second phase opening to the public in August 2015, more than doubling the size of the total system.
In 2003, six months before the first phase was due to open, local estate agents reported a notable upturn in the property market, specifically in the areas that the tram was set to run through. Research noted increased activity and very buoyant prices for sites at Commerce Square, Plumptree Street and Fletchergate, as well as Hucknall.
Since the launch of phase two, experts are predicting an increase in house prices, with some suggested homeowners could see prices rise by up to 10 per cent because of the new tram connections.
Crossrail is a railway line currently under construction in London, with the aim of providing a high-frequency commuter/suburban passenger service to link parts of Berkshire and Buckinghamshire, via central London, to Essex and South East London.
While there is still some time to wait before Cross rail is finished – the service is expected to begin full operation in 2019 – it has already begun to have an impact on nearby property values. Research undertaken for Property Week found that house prices increased by up to 73 per cent along the Crossrail route between 2013 and 2015, with some areas outstripping the London average by up to 56 per cent.
The areas that saw the biggest growth in property value were Taplow (73 per cent), Gidea Park (49 per cent), Custom House (46 per cent), Hayes and Harlington (46 per cent) and Southall (45 per cent). Homeowners who had purchased a property in one of these areas in 2013 stand to make profits of up to £170,000 if they were to now sell their property.
Capitalising on future expansion plans
There is no denying the impact good public transport links have, both on the financial value of a property and its attractiveness to prospective buyers. There are a number of current or planned transport projects happening around the country that homeowners should be keeping in mind; whether it’s the ongoing Metrolink expansion in Manchester, the proposed Crossrail 2 route in the South East, the Nottingham Express Transit system or the HS2 high speed rail route.
People looking to purchase a home need to weigh up how important proximity to transport links are against how much more they are willing to pay for a home. If cost is an issue, it could be worth looking at properties slightly further away from major transport links, as prices may start to decrease as you move further away. However, while a home in close proximity to transport links may cost more, it will also allow the owners to demand a higher value should they decide to sell the property in the future.
Aldermore have a variety of different mortgage products, whether you’re a first time buyer, remortgaging, moving up the housing ladder or looking to enter the buy to let market. To find out more about the different products and terms, and to see which is suitable for you, get in touch with the team today.
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