Many factors influence property prices in London, but we all know transport is a critical factor. In North London, we have a lot of great options, and getting around the capital isn’t a problem.
This is just one of the reasons why so many people are looking for homes in this part of the capital. At Ariston Property, we know the local market, and we know the key factors which influence buyers and vendors. We are also pleased to see major studies confirming what we know.
A new study by Nationwide focuses on the “transport effect” on property prices, and it is still a critical factor in the housing market.
Transport hubs lead to higher house prices
In the capital, a property found within 500 metres of a railway station or Underground line carries a significant premium compared to a property found 1,000 metres away. A similar phenomenon is found in Glasgow and Greater Manchester.
Nationwide’s Andrew Harvey says: “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.”
The premium impacts property prices
The study finds a property within 500m from a London station carries a 9.7% premium, and for average prices in London, this equates to around £46,800.
A property found 1,000m away carries a 4.3% premium, and at 750m, the premium is 6.8%.
Andrew Harvey also said; “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 property located 500m from a station attracted an 8.6 per cent premium over a comparable property 1,500m from a station. 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 around £850,000 in areas where the nearest station is on the Circle line. Of all the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that it stretches towards the outer suburbs, with only a short section in central London.”
In Glasgow, the premium is 7.2% (or £11,400) compared to property located 1,500m from a station.
In Greater Manchester, a property located 500m from a station carries a 6.1% premium, which equates to around £11,000.
We know these are challenging times, but if you have any questions about the local property market, please feel free to contact us. At Ariston Property, we aim to support the local community as best we can, and we look forward to assisting you in any way.