Transport And Road Developments Will Impact Leeds Property Market

Published: 01/07/2021 By AR

As a Leeds estate agent, we know the city is changing, and it is great to see development work across the city. Anything which improves the life of local people is welcome, but we know that new roads and transport options can positively impact the local housing market.

Road improvements will make life easier for many

Transport in and out of a city is vital for development, and Leeds City Council is looking for feedback on plans to introduce a new Park and Ride location, which will sit on the north-east end of the A64. Overall, there will be improvements along vital areas of the route, notably between Marsh Lane, found on the outskirts of the city centre, and Whinmoor.

In a study from 2015, called The Effects Of Highway Development On Housing Prices, the authors stated in their conclusion;

“The findings support our expectations. Improved accessibility is found to be valued positively, whereas noise and traffic intensity are found to affect housing prices negatively. In most properties in the treatment area, the combined effect of the three externalities is found to be positive, as reflected in the overall average increase in the transaction prices of houses. This implies that the positive value attributed to improved accessibility levels is greater than the negative values attributed to increased noise pollution and traffic intensity levels.”

The full study can be seen at this link.

A new rail station could have a big impact in Leeds

Leeds City Council have agreed to press ahead with plans for a new rail station close to the White Rose Centre. The council’s deputy leader Coun Debra Coupar said: “It is much needed in that area of the city around ensuring we have good economic recovery and employment facility for local residents.”

It is hoped the new station will be completed by the end of 2022.

A recent study by Nationwide highlighted the premium price property in London, Glasgow and Manchester has when close to a train station. While the study itself didn’t mention Leeds, the principles are sound, and are likely to be relatively true across the country.

Therefore, any rail improvements and developments in Leeds will likely have an impact on the Leeds property market, and the price of property.

• The study finds a property within 500m from a London station carries a 9.7% premium, and for average prices in London, this equates to around £46,800.
• A property found 1,000m away carries a 4.3% premium, and at 750m, the premium is 6.8%.
• In Glasgow, the premium is 7.2% (or £11,400) compared to property located 1,500m from a station.
• In Greater Manchester, a property located 500m from a station carries a 6.1% premium, which equates to around £11,000.

Andrew Harvey from Nationwide said; “Our analysis suggests that there has actually been a slight increase in station premiums in London compared with pre-pandemic levels. In 2019-20, a property located 500m from a station attracted an 8.6 per cent premium over a comparable property 1,500m from a station. The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London.  Average house prices are around £850,000 in areas where the nearest station is on the Circle line. Of all the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that it stretches towards the outer suburbs, with only a short section in central London.”

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