Homes within 500m of a station cost up to £42k more

29 August 2014

Living close to a train, tube or tram station can add more than £40,000 to the average property price.

Homes located within 500 meters of a station in Greater London are 10.5%, or £42,000, more expensive than identical properties situated 1.5 kilometres away, according to the latest house price data compiled by Nationwide.

The premium subsides to 7.6% within 750m and 4.9% for 1km.

The extra residents are prepared to pay to be no more than 500m from a station in London is growing, having risen from 9.1% in 2012 - the last time Nationwide crunched the numbers.

Nationwide's analysis shows the same link between proximity to a station and property prices in Glasgow and Manchester.

People pay £9,400, or 6%, more to live within 500m of a station in Glasgow, which has the largest network of suburban railway lines outside of London. Homes 750m away sell for 4.2% more than those 1.5km away, while those 1km away go for 2.6% more.


"In the Greater Glasgow area, 72% of properties are within 1.5km of a station. The districts best served by the network include Glasgow City, Inverclyde and West Dunbartonshire, where over 80% of properties are within 1.5km of a station," explained Nationwide chief economist Robert Gardner.

In Manchester, the 500m premium amounts to £8,300, sliding to 3.2% for 750m and 2% for 1km.

"Recent Metrolink developments have helped to improve transport accessibility within the Greater Manchester area," said Gardner. "For example, the East Manchester line running from Piccadilly to Ashton-under-Lyne via Droylsden, which opened in October 2013, has improved Tameside's transport links."

He added: "The extension of the South Manchester line from St Werburgh's Road to East Didsbury means that nearly 75% of properties in the City of Manchester are now within 1km of a Metrolink stop.

The lower premiums to live close to a station in Glasgow and Greater Manchester than those in Greater London "probably reflects the greater reliance on public transport in the capital, with residents less likely to drive", he said.

Nationwide also revealed ranked the London Tube lines by average house prices, with the Circle line – which runs through areas such as Chelsea – coming out on top at £802,601. The Bakerloo line emerged second on the list at £55,762 and the least expensive was the Metropolitan line, where the average price of nearby homes was £369,417.

All lines' average house prices were at least double the UK average for August of £189,306 – which was up 11% year-on-year.

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