Do New Light Rail Stations Enhance Property Values in Mature Cities? Evidence from UK Cities

With the growing focus on sustainable development, light rail transit (LRT) systems are increasingly viewed as key drivers of low-carbon mobility and spatial equity. However, as urban spatial structures become more stable, it remains unclear whether LRT systems can still enhance quality of life, property values and contribute to inclusive urban regeneration. This study explores Manchester, Sheffield, and Nottingham, three UK cities with recent LRT development experience, as case studies. Using LRT constructed or expanded between 1995 and 2019 as a quasi-natural experiment, a difference-in-differences (DID) model is applied to estimate the causal impact of LRT expansion on property prices. The results indicate that LRT construction can lead to a 4.44% to 8.29% increase in nearby property values, with a lagged effect observed after implementation. The impact is more pronounced in areas with well-developed bus networks and in lower-income areas. Further mechanism analysis suggests that the effect is indirectly driven by improved accessibility and enhanced convenience of access to local amenities.