After a year of countless lockdowns and remote working, transport links have become less of a priority for those looking to move. However, as we gradually return to normality, it seems that transport links has reclaimed its position as a top priority for many buyers and renters.
In fact, it appears that it is such a priority, that we are now prepared to pay more of a premium to have such amenities on our doorstep. According to a special transport report by Nationwide, that was part of their house price index, it was found that properties that were located close to a train or tram station saw a more substantial increase in value compared to those that lived further out.
This seemed particularly to be the case in the capital, which, of course, is home to the famous London Underground that currently has 11 lines and 9 zones around the Greater London area. Properties that were within 500 metres of one of the Underground’s 270 stations saw a 9.7% increase in price, which is a premium of £46,800 (based on average property prices in the region) over a similar property that is 1,500m away from a station. According to the study, it was found that more central boroughs are the best connected with up to 75% of properties being within 500m of a tube station, these included Camden, Tower Hamlets and Kensington & Chelsea. In contrast, the boroughs of Havering, Bexley and Barking & Dagenham only had 20% of their properties close to local transport links, which meant that overall, house prices were cheaper.
Outside of the capital, other cities also saw impressive inflation on their house prices due to their transport network. In Manchester, properties that were in close proximity to either a railway station or Metrolink station (which is Greater Manchester’s tram network that spans from the city centre to outer boroughs such as Bury, Rochdale and Altrincham ) also saw a larger increase in property prices. In Nationwide’s research, it was found that properties that were within 500m of a Metrolink or train station attracted a 6.1% price premium over a similar property that is located further away, which is approximately £11,000 based on average prices in the region.
Glasgow boasts the largest network of suburban railway lines in the UK outside of London, and this is certainly reflected in the city’s house prices. Nationwide recorded those properties that are close to railway stations saw a 7.2% price premium over an otherwise identical property further away. Interestingly, properties in Glasgow that were close to local transport links saw an even bigger premium compared to when the Nationwide ran the same study during pre-pandemic times in 2019, despite the usage of public transport being vastly reduced since then. This clearly demonstrates that people still very much value these transport links and fully expect to use them on a regular basis again once the pandemic is over.
Transport links will always be an important feature for any mover – whether they are buying or renting their property, and as city centres become more environmentally friendly and pedestrianised, it will become more important for tenants and buyers. Pandemic or not, transport links should always be an important factor when looking at your next investment property.
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