A study by Nationwide researched what premium a property could attract depending on its accessibility to a train station or metro in London, Manchester and Glasgow.
The premium was calculated after taking account of other property features, including property type – whether detached, a new-build or period – number of bedrooms and local neighbourhood.
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Unsurprisingly, the findings revealed that London property within 500 metres of a station can command an extra £42,900, equating to a 9.4% premium. Properties situated 750 metres away carry a premium of 6.6% and 1,000 metres from a station attracts a premium of 4.1% premium.
The study’s analysis shows that London has the densest network of stations and services, with 94% of properties lying within 1.5 kilometres of a station. Only 6% of the capital’s homes are further than 1,500 metres away from an underground or rail station, with outer suburbs accounting for the majority of this number.
Excluding the City of London, Camden, Tower Hamlets and Kensington and Chelsea are among the best connected boroughs, with around 75% of properties within 500 metres of a station.
On a comparable basis to the factors used to assess London, Greater Manchester was found to carry a £12,600 premium for a similar property 1.5 kilometres away from both metro and rail links, while in Glasgow buyers will expect to pay £5,700 extra.
Glasgow has the largest network of suburban railway lines in the UK outside of London. The area covered by the Strathclyde Partnership for Transport (SPT) includes around 185 railway stations with a further 15 subway stations in Glasgow city centre. The city has a 72% density of transport networks.
However, buyers in Glasgow are more reluctant to pay a premium to be close to a railway or subway station. A property located 500 metres from a station attracts a 3.8% price premium over an identical property 1,500 metres from a station.
Greater Manchester seen strongest growth among England’s light rail and tram systems
In Manchester, like London, buyers will pay more to be near a Metro or railway station. A property located 500 metres from a station attracts a 7.8% price premium over an otherwise identical property 1,500 metres from a station.
Greater Manchester is served by an extensive network extending to 70% of railway and tram lines. Considerable expansion of the Metrolink network to Manchester Airport and the opening of the Second City Crossing has seen Metrolink passenger numbers rise by 9% in 2017/2018.
Andrew Harvey, Nationwide’s senior economist, said: “The study looked at how the proximity to either a metro or railway station impacted property prices in London, Manchester and Glasgow.
“London homebuyers appear willing to pay a greater premium for being close to a station compared with those in Greater Manchester and Glasgow. This probably reflects the greater reliance on public transport in the capital, with residents less likely to drive.”