Greater Manchester has been one of the best-connected regions in the country in recent times, but Mayor Andy Burnham has put new plans into place to ensure that the network will rival that of London’s in the next few years.
As things stand, those living and/or commuting around Greater Manchester have the option of countless bus, tram and train services to get around the region’s numerous boroughs, all ran by various different private companies. The vision for the future of Greater Manchester transport is that of a London-style franchise system, with the region’s bus network being brought back under public control.
This change will see Greater Manchester become the first region – excluding the capital – to feature a regulated bus system since back in the 1980s. Things such as fares, timetables and routes will all be set by the local governing authorities as opposed to private companies, with the aim to ensure more affordable transport and improved accessibility throughout the region.
Following his re-election as Mayor of Greater Manchester earlier this year, Burnham vowed to speed up the plans for this improved, London-style transport network – aiming to accelerate the bus franchise by 2024. Burnham also proposed that 95 electric vehicle charging points will be introduced by the end of this year, with a further 200 by the end of 2022. In addition to this, a bike hire scheme will launch in November of this year, as well as the completion of 100km of cycling and walking routes by the end of 2021.
This wide-scale transformation of Greater Manchester’s entire transport network is set to result in a more affordable and intertwined transport network, with each aspect working in conjunction with one another. These drastic changes will no doubt have an impact throughout the region, but what impact will they have on Greater Manchester’s property market?
In its June 2021 House Price Index, Nationwide found that the importance of a property being close to transport links is still high, with households close to said transport links attracting significant value.
When it comes to rental properties, transport links nearby are essential, as a large number of people living in rental homes must commute to work, in particular when focusing on city centre properties.
The aforementioned report from Nationwide found that, in Greater Manchester, transport links add an impressive premium to a property’s price. Nationwide’s senior economist, Andrew Harvey, had this to say on the importance of the region’s transport links when it comes to property; “Our research suggests that while homebuyers are still willing to pay a premium to be close to either a Metrolink or railway station, this has fallen since the onset of the pandemic.”
“A property located 500m from a station attracts a 6.1% price premium (approximately £11,000 based on average prices in the region) over an otherwise identical property 1,500m away.”
Despite a slight drop in significance thanks to the pandemic, transport links remain absolutely key when people are looking for a both a rental property or a home to buy, and with the complete transformation of Greater Manchester’s transport network currently underway, it would be no surprise to see house prices and tenant demand both increase as a result, in turn resulting in rental yields increasing.
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