Want to live close to a station? That'll be an extra £42,000

 Home buyers are willing to pay a 10pc premium for a property that is close to a tube, railway or tram station - particularly in London where these homes attract up to £42,000 more.

Nationwide Building Society has conducted research into how proximity to a tube or railway station impacts property prices in London, Manchester and Glasgow as part of its latest House Price Index.

It found the impact is most marked in London, where being located 500m from a station attracts a 10.5pc price premium over an otherwise identical property 1,500m from a station.

This is equivalent to approximately £42,000 based on the value of the typical London home.

In Manchester, the premium on a typical property that is 500m from a station is 4.6pc, or £8,300, while in Glasgow it is 6pc, or £9,400.

Robert Gardner, chief economist at Nationwide, said: “London homebuyers’ willingness to pay a greater premium for being close to a station compared with those in Greater Manchester and Glasgow probably reflects the greater reliance on public transport in the capital, with residents less likely to drive."

“London also has the densest network of stations and services, with 94pc of properties within 1.5km of a station, compared with 72pc in Greater Glasgow and 69pc in Greater Manchester.”

London

Excluding the City of London, Camden is the borough best served by the tube and rail network, with 85pc of properties within 500m of a station.

While Camden has always benefited from a high density of tube stations, it has also recently seen improved rail services thanks to London Overground. However, it is also one of the most expensive areas of the capital, with average prices currently around £843,000.

Havering, Bexley and Barking & Dagenham are amongst the least connected boroughs, with fewer than 20pc of properties within 500m of a station. Average house prices tend to be lower in these areas, but this also reflects that they are further away from central London.

Which tube lines have the highest house prices?

The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London. Average house prices are over £800,000 in areas where the nearest station is on the Circle line.

Average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that the line stretches towards the outer suburbs, with only a short section in central London.

Manchester

In Greater Manchester, 69pc of properties are within 1,500m of a station. The areas best served by the network include the City of Manchester, Trafford and Tameside, where over half the properties have a station within 1,000m.

A property located 1,000m from a station commands a 2.0pc premium, at 750m this increases to 3.2pc and for a property 500m from the station the premium is 4.6pc.




Glasgow

Glasgow has the largest network of suburban railway lines in the UK outside of London, however the premium people are willing to pay to be close to a station is more modest.

A property located 1,000m from a station commands a 2.6pc premium, at 750m this increases to 4.2pc and for a property 500m from the station the premium is 6.0pc.




In the Greater Glasgow area, 72pc of properties are within 1,500m of a station. The districts best served by the network include Glasgow City, Inverclyde and West Dunbartonshire, where over 80pc of properties are within 1,500m of a station.

Glasgow city proper is extremely well served, with around 60pc of properties no more than 500m from a subway or railway station.

Source: The Telegraph