Nationwide Building Society’s latest research reveals that homebuyers in London, Manchester, and Glasgow continue to pay a significant premium to live close to railway and metro stations, underscoring the enduring value of robust transport links in urban housing markets. Comparing properties located 500 metres from a station with those 1,500 metres away, the study found that London buyers pay an average premium of around £42,700 to £46,800, depending on the data source, reflecting the capital's heavy reliance on public transport. In Greater Manchester and Glasgow, the premiums are more modest but still notable, standing at approximately £10,900 and £8,800 to £11,400 respectively.

Andrew Harvey, Nationwide’s senior economist, highlighted the importance of transport links in homebuyers’ decisions, noting from a commissioned Censuswide survey that over 80% of Londoners consider proximity to a station either “fairly” or “very important.” In contrast, around 60% of respondents in Glasgow and Manchester felt similarly. This variation corresponds with public transport usage patterns, with nearly 60% of Londoners using rail or Tube services more than once a week, compared to roughly 35%-37% in the other two cities. Harvey explained to The Guardian and other outlets that the greater London premium likely reflects this higher dependence on public transport.

The survey also revealed that on average, respondents across the three cities were willing to pay around 8% more for homes near transport hubs. Notably, almost 30% of Londoners expressed a willingness to pay over 10% extra. Among those living within a half-hour walk of a station, the primary motivators were ease of travelling around the city and reduced commute times. Interestingly, about 10% reported that they did not own or desire a car, possibly reflecting lifestyle and environmental considerations.

Within London, the research delved deeper into variations by Underground line, finding that areas served by the Circle Line command the highest average house prices at approximately £729,000 or even around £850,000 according to Nationwide’s broader data. This contrasts with an average of about £401,000 for properties near the Elizabeth Line. The analysis covered various public transport services including the London Underground, Docklands Light Railway, London Overground, Elizabeth Line, and National Rail, focusing on boroughs within Greater London.

Mary-Lou Press, president of the National Association of Estate Agents (NAEA) Propertymark, said that besides transport links, factors such as access to good schools and an ideal local social environment heavily influence buyers’ choices. She also pointed out that changing work habits, especially the rise of remote and hybrid working, have enabled more people to consider relocating to more affordable or desirable areas while continuing with their current jobs. Andrew Harvey concurred, highlighting how flexible working models influence housing decisions alongside transport accessibility.

The premium paid for proximity to stations reflects a long-standing trend. For context, a 2014 Nationwide study found similar patterns of price uplift near stations, although the premium amounts have grown since then, especially in London. This increase aligns with broader urban development trends and evolving commuter behaviours post-pandemic.

In summary, transport connections remain a key determinant in property values across London, Manchester, and Glasgow, with London showing the most pronounced impact due to higher public transport usage. The research highlights that despite some shifts in work patterns, the convenience and efficiency of living near a station continue to command a notable financial premium in these major UK cities.

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Source: Noah Wire Services