Photo: The Laird of Oldham
While London’s property market gets a boost from the Crossrail effect, new figures reveal that Manchester house prices enjoy a similar lift from its own transport links.
Metrolink, which in 2013/14 transported some 29.2 million passengers along its seven lines according to the Department for Transport, was the UK’s first modern, street-running rail system, having opened in 1992. Today, it is an essential component of Greater Manchester’s transportation network, with three new lines having opened in 2014.
“With three new tram lines opening in 2014, Metrolink is now connecting more people with more places than ever before – making it easy to get to employment and leisure opportunities across Greater Manchester,” Councillor Andrew Fender, Chairman of the TfGM Committee, comments.
Data from Nationwide shows that buyers in the UK city are prepared to pay 4.6 per cent more on average for a home that is within 500 metres of a tram stop. Or, to put it in price terms, a tram stop can add £8,300 to the value of a typical home.
The finding arrives as investors increasingly turn to regional cities such as Manchester in search of stronger buy-to-let yields.
Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, comments: “Having a Metrolink so close to a property is excellent news all round. For the investor, it makes their property a more valuable asset. It also means that demand from potential tenants is likely to be higher and that the property can command a higher yield as a result. It also makes properties easier to sell, should investors wish to do so.”
Indeed, Custom Quay, in the Salford Quays area of Greater Manchester, is 150 metres from the nearest tram stop, meaning that central Manchester is accessible in just 15 minutes. Such a quick connection adds commuter appeal to a rental property.
Acording to law firm JMW Solicitors LLP. house sales in the Metrolink region rose by an average of 15 per cent in 2014, while in some regions, transactions even doubled.