We all know the impact tube stations and railway stations have on property prices across London. This is something we have long known of at Holmes Estate Agents, and it is always good to see it being discussed by major names in the property market.
A new study by Nationwide focuses on the “transport effect” on property prices, and it is still a critical factor in the housing market.
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.
We know what drives the London housing market
Therefore, this is an additional aspect to consider if you are looking to make a move in, out or around the South West London market. Train stops and stations help to make life feel easier and more convenient, but it might make buying a home a more expensive process.
Of course, if you are looking to sell your home, you might find this local attraction to be a great feature that provides you with a much-needed boost in the market.
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 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%.
What move do you wish to make in, out or around South West London?
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 have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.