You are here: Home - News -

House prices on track in cities with tram lines

by: Christina Hoghton
  • 12/05/2017
  • 0
House prices have been boosted after opening tram routes in five leading cities, according to Lloyds Bank.

The mortgage lender found that property prices along the tram routes in Manchester, Birmingham and Edinburgh grew by an average of 12% in the first two years after opening. This contrasts with the two years before construction when property values remained unchanged in those same cities.

The tram effect

Half of residential locations close to tram stops in Manchester, Birmingham, Nottingham, London and Edinburgh have seen house prices grow faster than surrounding areas.

In Manchester, the residential area served by the South Manchester line has seen house prices grow by 343% (from £57,425 to £254,224) since 1995 compared to an increase of 276% (from £44,488 to £167,431) in the city as a whole.

In Nottingham (pictured), house prices in the area covered by Line 2 in the south of the city have grown by 40% (from £115,050 to £160,674) compared to 31% (from £137,804 to £180,102) in the surrounding areas since 2004.

Andrew Mason, Lloyds Bank mortgage products director, explained the reasons for the price rises: “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.

“These are important factors for the housing market, and we can see these 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.”

Impact of Crossrail

The report also looked at the impact of future transport regeneration – Crossrail. The new service – named the Elizabeth Line – will begin operating this month, although the full service stretching from Reading, in Berkshire, to Shenfield, in Essex, won’t be operational until December 2019.

Despite this, house prices near future Crossrail stations have already seen an average increase of 22% over the past two years in anticipation of the new line, from £344,242 in 2014 to £420,798 in 2016, compared to an average 14% growth for surrounding local authority areas and a 13% rise for Greater London.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
buying a home
UK house sales subdued but market remains stable – RICS

Momentum is continuing to ebb in the UK housing market as sales dip slightly and buyer interest remains flat in...