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West Midlands property pockets due to see a transport inspired house price boost

Research by leading Birmingham estate agent, Barrows and Forrester, has highlighted the potential uplift in property prices expected across the West Midlands market as a result of the regions ongoing transport infrastructure upgrades.

The West Midlands is currently undergoing extensive plans to transform transport infrastructure with a number of current Metro extensions either planned or already underway, as well as news last week that work has begun on the 300km test route for an ambitious autonomous vehicle network. 

Previous research from Nationwide Building Society found that property prices within 750 metres from a transport station are 6% higher on average compared to those at a further distance. 

The Metro

Barrows and Forrester looked at property prices along the existing Metro line and found on average, homes are worth £226,909. 

They then looked at the areas where line extensions are currently under construction and found the average property price sits at just £189,507. However, with a Metro station on the way, 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 of the new Five Ways station, could see the largest uplift in monetary terms with a 6% increase equating to a £13,746 boost in house prices. 

As well as current extensions, there are a number of other areas earmarked for development, providing future homebuyers with a more affordable foot on the ladder and a potential return down the line. 

The current house price in these earmarked areas currently sits at £162,296 however a 6% increase would bring this up to £172,701. 

Again, 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. 

The Autonomous Vehicle Route

But it isn’t just the development of the Metro that could help boost house prices, the additional benefits of the planned autonomous vehicle route could also play its part. 

Currently, house prices along the route due to benefit from the service sit at an average of £232,212 but this could climb to £246,145 due 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 and Baginton with jumps of £19,000 and £18,000 respectively. 

Managing Director of Barrows and Forrester, James Forrester, commented:

“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.”

Data 

Premium compared to property location 750m from a train station/tram stop
LocationDistance from station premiumOverall average within 750m from station
500m750m
Glasgow3.8%2.7%3.3%
London9.4%6.6%8.0%
Manchester7.8%5.4%6.6%
Average7.0%4.9%6.0%
Source: Nationwide
Current and potential house prices in areas due to benefit from the autonomous vehicle route
CategoryAverage House Price (current)Potential Increase (6%)Potential Average House Price
Line One (Existing)£226,909N/AN/A
Extension under construction£189,507£11,370£200,877
Line development£162,926£9,775£172,701
Current and future metro locations sourced from: West Midlands Metro
House price data sourced from: PropertyData
Future stations due to benefit with the highest monetary increase in house prices
Future StationStatusPostcodeAverage House Price (current)Potential Increase (6%)Potential Average House Price
Five WaysExtension under constructionB15£229,100£13,746£242,846
New Canal StreetFuture line developmentB5£207,216£12,433£219,649
Meriden StreetFuture line developmentB5£207,216£12,433£219,649
High Street DeritendFuture line developmentB5£207,216£12,433£219,649
Current and future metro locations sourced from: West Midlands Metro
House price data sourced from: PropertyData
Current and potential house prices in areas due to benefit from the autonomous vehicle route
RouteCurrent Average House PricePotential Increase (6%)Potential Average House Price
Meriden£344,734£20,684£365,418
Curdworth£320,367£19,222£339,589
Baginton£306,163£18,370£324,533
Solihull£290,946£17,457£308,403
Allesley£251,428£15,086£266,514
Eastern Green£247,186£14,831£262,017
Yardley£191,572£11,494£203,066
Coventry£191,089£11,465£202,554
Birmingham£185,499£11,130£196,629
Erdington£181,963£10,918£192,881
Acocks Green£177,824£10,669£188,493
Marston Green£170,770£10,246£181,016
Saltley£159,222£9,553£168,775
Average232212.478£13,933£246,145
Autonomous vehicle locations sourced from: WMCA
House price data sourced from: PropertyData

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