Londoners are paying nearly £43,000 more on average for homes located within easy reach of a train or Tube station, according to new research by Nationwide. The study found that properties within 500 metres of a station cost 8% more than comparable homes situated 1,500 metres away.
In real terms, this equates to an average premium of £42,700 in the capital. The premium is significantly smaller elsewhere in the UK, at £10,900 in Manchester and £8,800 in Glasgow.
London Transport Links Drive Demand
The report found that proximity to transport links remains a key driver of property values in London, where public transport is heavily relied upon for commuting and daily travel.
Nationwide’s senior economist Andrew Harvey said:
“London homebuyers continue to be willing to pay a significant premium for being close to a station compared with those in Glasgow and Manchester. This likely reflects the greater reliance on public transport in the capital.”
Richard Donnell, research director at property portal Zoopla, told the BBC that London “drives a bigger premium because of its scale and size”, adding that “location really matters” when it comes to house prices.
Survey Highlights Commuter Priorities
Nationwide also commissioned a survey of 1,000 residents in London, Manchester and Glasgow. Around 80% of Londoners said being near a station was important when choosing a home, compared with about 60% in the other two cities.
Respondents cited quick travel around the city and easier commutes as the main reasons for prioritising proximity to stations.
However, more than half of Londoners (53%) admitted affordability pressures meant they had to live near a station further from the city centre, with many looking to suburban areas or satellite towns such as Reading and Milton Keynes.
Impact of Flexible Working
Mary-Lou Press, president of Propertymark, said the rise of remote and hybrid working models has made it easier for people to move further away from central London while keeping their jobs.
“These flexible working models enable individuals to move to more affordable areas, while keeping their current jobs,” she said.
Circle Line vs Elizabeth Line
The study also analysed average house prices along different London transport routes. Properties near Circle line stations were the most expensive, averaging £729,000, reflecting their location in central London.
By contrast, the Elizabeth line was found to be the most desirable route for residents, despite having the lowest average property prices. Nationwide noted that this was because many of its stations are based in suburban areas.
The Metropolitan line also recorded lower average house prices at £463,000, largely because most of its route runs through outer London suburbs.
