Trams bring property price rises to Edinburgh!

If you’re thinking of selling your house in the near future, you may be able to thank Edinburgh’s tram line for an increase in its value; according to predictions, prices are expected to rise by up to 15 per cent for properties within a one-mile radius of the tram route between Edinburgh airport and York Place.

If your home is within an 800-metre walking distance of a tram stop you’re likely to benefit from an even bigger increase in the value of your property. Even further away, you could still expect to see a small rise in property value, as homeowners within two miles are also hoping for a long term improvement.

Edinburgh estate agents and homeowners are hoping that property price increases in the city will be along the lines of those in Dublin after trams were introduced in 2004. The boom in property prices there also led to more transport development, and more extensions to the tram route, part-funded by property developers. If the same happens in Edinburgh, we could potentially see a tram extension down Leith Walk despite this currently being ruled out due to lack of funding.

There are already encouraging signs of a tram-led property price hike - six deals worth around £100m were signed on Princes Street at the end of last year. Commercial land along the route is already beginning to see the ‘tram effect’ - last December, a  60,000 sq. ft. building and a 48-acre plot on the Gyle, where there are expected to be three tram stops, were sold for £15m, a cool £5m more than agents had expected when offers were invited in 2012.

Other transport projects which may also impact on the value of property in Edinburgh include the development of the Borders Railway line, which is the longest rail reopening project in modern British history. The development is making transport into Edinburgh for areas which have until recently only been reachable by bus and private car much easier, and more affordable. It costs less than £10 to travel the 30-mile route between Waverley and Tweedbank.

The areas most likely to benefit from the tram are Haymarket, Balgreen, Stenhouse, Bankhead and Ingliston. The biggest increases are likely to be in modest two or three-bedroom houses which are favoured by  people who need to commute to the city centre and want to escape the stress of the traffic jams on the way into work (and the parking charges once they have arrived!)

For friendly and approachable advice on residential conveyancing and estate agency, contact Sturrock, Armstrong and Thomson.