Transport links are driving sizeable premiums on property prices, in some cases by as much as £43000, as home movers value property close to rail, underground and tram services in London, Manchester and Glasgow.
Research conducted by Nationwide Building Society in the three cities suggests buyers are paying more for property closer to transport links. In London for example. the closer the property is to a Tube station, the higher the premium.
“A property located 1,000m away commands a 3.5% premium, at 750m this increases to 5.6%, while a property 500m from a station attracts an 8.0% premium (approximately £42,700 based on average prices in London) over an otherwise identical property 1,500m from a station.”
said Andrew Harvey, Nationwide’s Senior Economist.
The research was last undertaken in 2021 and the results are broadly similar, albeit the percentages have fallen. The 8% premium for a property 500m from a station was 9.7% when the research was last conducted.
In Greater Manchester, there is a 4.9% premium for properties closest to the Metrolink (around £10,900 based on average prices in the region). Again this is a fall from 6.1% in the 2021 research. In Glasgow the premium for the closest properties to rail inks is 4.9%.
The research surveyed 3,000 respondents equally across London, Manchester and Glasgow earlier this year. Harvey concluded:
“Our recent market research confirms that transport links remain important to those living in major cities, with over 80% of Londoners saying being near a station was either ‘fairly important’ or ‘very important’ when choosing to buy or rent their current property. Meanwhile, in Glasgow and Manchester, around 60% of respondents stated being near a station was either ‘fairly’ or ‘very important’.”
“This is likely to reflect that those living in London typically use their local station more often, with nearly 60% using either rail or tube more than once a week. This compares with 37% in Glasgow (for rail and subway) and 35% in Manchester (for rail and Metrolink).”
