Barrows and Forrester: West Midlands likely to see transport-fuelled house price boost
Research by Birmingham estate agent Barrows and Forrester has highlighted the potential for an uplift in property prices across the West Midlands market as a result of ongoing transport infrastructure upgrades.
The West Midlands is undergoing extensive plans to transform its infrastructure; a number of Metro extensions are either planned or underway, and work has begun on the 300km test route for an autonomous vehicle network.
Previous research from Nationwide Building Society found that property prices within 750 metres from a transport station were 6% higher on average compared to those at a further distance.
For properties along the existing Metro line, homes are worth £226,909 on average.
In the areas where line extensions are currently under construction, the average property price sat at just £189,507.
These pockets of the property market could be due for a boost in values, with a 6% increase bringing the average house price up to £200,877.
The B15 postcode, soon to be home to the Five Ways station, could see the largest uplift in monetary terms; a 6% house price boost would equate to £13,746 more on average.
The current house price in areas earmarked for development currently sits at £162,296; a 6% increase would bring this up to £172,701.
The highest increases in a monetary sense would be in the areas surrounding the New Canal Street, Meriden and High Street Deritend stations, with an uplift just shy of £12,500.
Currently, house prices along the planned autonomous vehicle route sit at an average of £232,212; this could climb to £246,145 with to the availability of upgraded transport links.
The largest monetary increase would be for homeowners in Meriden, where prices could climb by over £20,000, closely followed by Curdworth (£19,000) and Baginton (£18,000).
James Forrester, managing director of Barrows and Forrester, said: “The current and continued development of the West Midlands transport network will play a vital part in building the region’s future and will help boost the local economy across a number of fronts.
“One such boost will almost certainly be the pockets of the local property market, due to benefit from these developments and homeowners can expect to see the value of their property increase as these extensions become operational.
“As our research shows, there is already a notable gap between property prices in areas already serviced by the Metro and those due to join the network.
“Our advice to savvy buyers would be to buy at a lower price point along with a soon to be completed extension, as this will ensure the convenience of a good transport link without paying through the nose, while almost certainly seeing the value of your investment climb over the coming years.”