A leading Birmingham estate agent has highlighted the potential increase in property prices anticipated across the West Midlands market as a direct consequence of the region’s 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. News also broke last week that work has now started on the 300km test route for an ambitious autonomous vehicle network.
Meanwhile, past research from Nationwide Building Society has revealed that prices for properties within 750 metres of a transport station are 6% higher on average compared to those at a further distance.
Barrows and Forrester, a two-branch agency operating in Birmingham, Lichfield and other parts of the West Midlands, examined property prices along the existing Metro line and found that, on average, homes are worth £226,909.
The agency 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 set for a rise 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 witness the largest growth in monetary terms with a 6% rise equating to a £13,746 boost in house prices.
There are a number of other areas earmarked for development alongside the current extensions, potentially 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 sits at £162,296. A 6% increase, though, would bring this up to £172,701.
Once more, the highest rises 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
It isn’t just the development of the Metro that could help boost house prices, the agency argues. The additional benefits of the planned autonomous vehicle route could also play a role.
House prices along the route due to benefit from the service currently stand at an average of £232,212, but this could climb to £246,145 due to the availability of upgraded transport links.
Homeowners in Meriden would see the largest monetary increase, with prices potentially climbing by over £20,000, closely followed by Curdworth and Baginton, with jumps of £19,000 and £18,000 respectively.
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.”
He said one such boost will almost certainly be in the pockets of the local property market, which is due to benefit from these developments. Homeowners, he continued, 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,” Forrester said.
“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.