Assetz® News - Why 'location location location' could make the difference in congested Manchester

Why 'location location location' could make the difference in congested Manchester

15th December 2008 |

It has frequently been stated that one of the benefits of location that could help make a property more valuable is close proximity to good public transport links. Those investing in property may be familiar with this, particularly if they rent out to commuters who rely on such links for their daily commute into city centres.

Of course, not everybody uses public transport and in recent years the idea of dealing with growing traffic congestions with some form of charge or toll has become popular with decision makers. Already implemented in London (although the westwards extension is now to be scrapped after a local consultation ordered by mayor Boris Johnson), the idea has been floated elsewhere. But in 2005 Edinburgh voters rejected such a plan and now Greater Manchester has done likewise, with all ten local authorities showing clear majorities against the idea.

In both the latter cases, the charge was tied to proposals to fund major local public transport improvements. Manchester was to get a large government Transport Innovation Fund (TIF) loan to expand and improve its bus, tram and rail services and pay this back with the receipts from the charge.

Commenting on the implications for property in the Manchester area, manager at Dandara Lettings Vicky McCarrick argued that some areas will now suffer in price. She stated: "Obviously what it means is that there is going to be an ongoing problem with congestion and whether that is going to impact on property prices because people will want to move out of the city centre as that gets worse."

However, she noted, this is not certain and the impact on prices of the decision is likely to be much less than that of wider economic influences. Moreover, Ms McCarrick noted, the situation is not likely to produce a "knee-jerk" effect because the city is not scrapping an existing charge. (those looking at investing in London may wish to monitor the situation in the westward extension area).

Ms McCarrick did suggest, however, that once the overriding current influences on property prices abate and prices begin a broad recovery, those parts of Greater Manchester which already have good transport links may perform better than those that will now miss out. She commented: "Good transport links are always a good thing to have and maybe going forwards more emphasis will be put on that."

For this reason, it may for example be worthwhile for investors to concentrate on the areas where the Metrolink tram system already operates, plus those districts (such as east and north-east Manchester, Oldham and Rochdale) where new lines are already in the pipeline. On the other hand, parts of south Manchester that were due to gain the bulk of the additional tramlines under the TIF plans may miss out.

The large majorities against congestion charging in Manchester and Edinburgh, plus the scrapping of London's westward extension, may suggest that congestion charging is off the agenda and with it plans - outside London at any rate - for major programmes of new transport investment. As such, those keen to buy property in areas with good train, bus, tram or underground facilities may need to concentrate on those places that are already well linked, or those whose future developments are already guaranteed and not dependent on planning dreams that may never become reality.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4543.html. Alternatively, please see our full press release archive.