A nearby tube station in London was found to provide the biggest boost to property prices throughout the UK of £42,000, while a nearby Metrolink stop in Manchester was found to result in a major £12,000 boost to property prices and a Glasgow Rail station within close proximity is worth a £9,400 boost to local property prices.
The research report from the banking group discovered that buyers in London are willing to pay an average of 10.5% more, equal to £42,000 on a typical property, for a home lying within 500 metres of a tube station.
Whilst it also found that in Manchester, buyers are willing to pay 4.6% more for a house close to a Metrolink tram stop. This price premium could be a response to the increasing importance of the Metrolink system in the city, which has experienced a 17% rise in passenger journeys over the last year.
Glasgow had the smallest percentage rise for properties near a rail station, yet impressively this rise still stood at 6%, equal to £9,400.
This positive news means that new-builds in the three major cities will receive a major boost in capital appreciation over the years if they are located close to transport links. Knight Knox International recently sold out Clyde House, a new-build development in Glasgow which is just 10 minutes away from Argyle Street Station. Investors in this can therefore expect to receive strong capital appreciation when their apartments realise their market value, with Nationwide stating that property prices in Glasgow boost by £9,400 if close to a rail station.
Additionally, Knight Knox International is set to launch X1 Eastbank in the coming weeks. This residential block will be located within a ten minutes’ walk of both New Islington tram stop and Piccadilly train station. Nationwide’s statistic that Manchester property prices go up by 4.6% if near a Metrolink tram station could also make this a savvy investment choice.
The report also studied the varying sizes of the cities’ different transport systems, finding that houses in London are far more likely to be near transport links than those in Manchester and Glasgow. Nationwide found that 94% of houses in London are within 1,500 metres of a station, compared with 72% in Strathcylde and 69% in Greater Manchester.
Strathclyde slightly surpassed Manchester in this respect due to its network of suburban railway lines, the largest in the UK outside of London. Despite the Strathclyde Partnership for Transport area having 175 stations and 15 subway stops, Inverclyde and West Dunbartonshire, both located outside of the centre, have the most amount of houses located nearby to train stations, with 80% of properties there standing within 1,500 metres of a station.
To read the full report click here.