Good transport links drive up house prices across UK cities

Good transport links boost London house prices, according to a new report.

Nationwide’s report reveals that 80% of Londoners said living near a station was either ‘fairly important’ or ‘very important’ when choosing to buy or rent their current property.

The report also shows transport links are important not just in London, but in Manchester and Glasgow as well.

Average house prices in areas closest to Circle line stations are around £729,000

According to the report, the Circle line serves some of the capital’s most expensive areas, covering much of central London and parts of the west. Average house prices in areas closest to Circle line stations are around £729,000.

However, the Circle was the least popular amongst survey respondents (in London) when asked which line on the Tube map they would ideally like to live by, most likely due to the high prices.

More than half (53%) of respondents in London stated that affordability pressures meant they had to buy or rent near a station that was further away from the city centre.

Andrew Harvey, Nationwide’s senior economist, said: “Of all the TfL operated routes, average house prices are actually lowest amongst stations served by the Elizabeth line, with an average price of £401,000.

“While a lot of the construction work as part of the Crossrail project was focused on central London, most of the stations are in more suburban areas, where prices tend to be lower (in particular out towards the east). But the Elizabeth line does appear to be a favourite amongst those surveyed; for 12% of respondents, it is currently their nearest line and 14% would like to live by it.”

London homebuyers are also willing to pay a significant premium for being close to a station

The report reveals that more than 80% of Londoners say being near a station is either ‘fairly important’ or ‘very important’ when choosing to buy or rent their current property, compared with around 60% of respondents in Glasgow and Manchester.

Andrew Harvey, Nationwide’s senior economist, said: “This is likely to reflect that those living in London typically use their local station more often, with nearly 60% using either rail or Tube more than once a week.”

London homebuyers are also willing to pay a significant premium for being close to a station. A property 1,000m away commands a 3.5% premium; at 750m this rises to 5.6%; and at 500m the premium reaches 8%, approximately £42,700 based on average London prices, over an otherwise identical property 1,500m from a station.

Nationwide’s survey also asked how much more people would pay to live in an area with good transport links compared with one with poor links. On average, respondents were willing to pay 8% more, with nearly 30% of Londoners saying they would pay over 10% extra.

Rail links add value in Glasgow and Greater Manchester

The research also reveals rail links in Greater Manchester attract a premium among homebuyers.

Mr Harvey said: “Our research suggests that while homebuyers are still willing to pay a premium to be close to either a Metrolink or railway station, this has fallen since 2021. A property located 500m from a station attracts a 4.9% price premium (around £10,900 based on average prices in the region) over an otherwise identical property 1,500m away. This compares to 6.1% in 2021.”

Nationwide also reports that rail links continue to add value in Glasgow. Analysis suggests homebuyers paid a 4.6% premium for a property 500m from a station (around £8,800 based on average prices in the region) compared with an otherwise identical property 1,500m away.

This is somewhat lower than the 7.2% premium identified in 2021 research.

Mr Harvey added: “The latest census data for Scotland suggests that Glasgow and the surrounding area continue to see a higher proportion of people using trains to travel to work than other parts of Scotland.”