Homebuyers in London, Manchester and Glasgow are willing to pay more to be within 1,000 meters of a train station, research from Nationwide finds.
In its latest House Price Index, Nationwide reports that homebuyers in London are willing to pay the most to be close to a station and are prepared to pay an extra 9.4% to be within 500 meters of a station, which equates to £42,900 on the price of an average home in the capital. In fact, Londoners will pay 4.1% (c£18,800) to be within a kilometre of a station.
It’s not just those that live in the capital that are prepared to pay higher prices to be located close to transport links, as homebuyers in Manchester are prepared to pay an additional 7.8% (c£12,600 based on the average prices in the region) to be within 500 meters and 3.3% (c£5,300) to be within a kilometre. While in Glasgow, homebuyers are prepared to pay 3.8% more (approximately £5,700) to be within 500 meters and 1.7% (c£2,500) to be within a kilometre.
Robert Gardener, Nationwide’s chief economist, said: “We recently updated our research on how the proximity to either a tube, tram or railway station impacted property prices in London, Manchester and Glasgow, after taking account of other property characteristics, such as property type, number of bedrooms and local neighbourhood type.
“Perhaps unsurprisingly, London homebuyers appear willing to pay a greater premium for being close to a station, compared with those in Greater Manchester and Glasgow.
“London also has the densest network of stations and services, with 94% of properties within 1.5km of a station compared with 72% in Glasgow and 70% in Greater Manchester.”
For first-time buyers, this could mean that, if they are able, looking at properties away from transport links could boost their chances of finding an affordable home, especially for those living in London. In fact, there was further good news for London first-time buyers last month when a report from Zoopla found that in London the ratio of house price-to-earnings had dropped from a high of 14.1 two years ago to a level of 13.1. This, together with the current highly competitive mortgage market, makes getting onto the property ladder a more realistic goal for many first-time buyers. For those planning on purchasing their first property soon, our first-time buyer mortgage charts provide the most competitive rates available today.
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