Living near to a train station or underground stop in Scotland’s largest city adds more than £10,000 onto the value of a home, research has found.
Economists at Nationwide looked at the ‘railway premium’ added onto properties within 500m of a rail link and found that buyers in Glasgow, London and Manchester were prepared to pay thousands for easy access to transport.
And the premium has grown during the months of the pandemic despite rail use dropping significantly, perhaps reflecting buyers faith that everyday life will return to normal in the near future.
According to the data examined by Nationwide, living near a rail link in Glasgow adds 7.2 per cent to the value of a property, up from 3.5% in 2019-20.
This equates to a house value bonus of £11,400 in 2021, compared to £5,200 the year before.
In London the premium was said to be £46,800, compared with a similar property 1.5km – equal to 9.7% of the house’s value, up from 8.6% the year before.
In Manchester the premium has fallen to 6.1% from 9.0% in 2019/20, equalling £11,000.
Andrew Harvey, Nationwide’s Senior Economist, said: “It is perhaps surprising that the premium for transport links in Scotland’s largest city has increased despite the reduction in public transport usage. But it would appear to suggest that those who are buying do still value these links and expect to use them again in the future.
“Indeed, pre-pandemic, Glasgow and the surrounding area saw a much higher proportion of people using trains to travel to work than other parts of Scotland.
“The districts best served by the network include Glasgow City, Inverclyde and West Dunbartonshire, where around 90% of properties are within 1.5km of a station. Both the latter contain many of Glasgow’s commuter towns and villages and are well connected by the main railway lines skirting the River Clyde.”