There is a £46,800 premium in London for property 500m from the nearest station, compared to a similar property 1,500m (1.5km) away, research from Nationwide shows.
London has seen its house price premium increase to 9.7% from 8.6% in 2019/20. Comparatively, Manchester has seen a drop to 6.1% from 9.0% in the same period.
Glasgow has seen the biggest increase in premium at 7.2%, up from 3.5% in 2019/20.
Andrew Harvey, Nationwide’s Senior Economist, comments: “We’ve analysed how the proximity to either a metro or railway station has impacted property prices in London, Manchester and Glasgow, after taking account of other property characteristics, such as type, number of bedrooms and local neighbourhood. This latest report is an update of the feature we published in 2019 (available to view online). Our analysis is based on transactions in the period April 2020 to March 2021, and which should therefore incorporate any shifts in housing preferences as a result of the pandemic.
“London homebuyers still appear willing to pay a significant premium for being close to a station compared with those in Glasgow and Greater Manchester. This probably reflects the greater reliance on public transport in the capital, with residents less likely to drive.
“The pandemic does not appear to have reduced the desirability of being close to a station in London, despite reduced public transport usage. Indeed, our analysis suggests the premium has actually increased slightly compared with pre-pandemic levels.
“We’ve also seen a noticeable increase in the premium to be located close to a station in the Greater Glasgow area, but in Greater Manchester, homebuyers appear to be placing a little less value on being close to a rail or tram stop compared to before the pandemic.”
Londoners still pay a significant premium to live near a tube or train station
Harvey continues: “Our research indicates that homebuyers in the capital continue to pay a significant premium to be close to a station. A property located 500m from a station attracts a 9.7% price premium (approximately £46,800 based on average prices in London) over an otherwise identical property 1,500m from a station.
“The illustration in the attached shows the price premium for similar properties at various distances from a tube or railway station (relative to a property 1,500m away). As you might expect, the premium buyers are willing to pay increases as you move closer towards a station. A property located 1,000m away commands a 4.3% premium, at 750m this increases to 6.8%, while a property 500m from a station attracts a 9.7% premium.
“Our analysis suggests that there has actually been a slight increase in station premiums in London compared with pre-pandemic levels. In 2019-20, a…