London leads station-price premium as buyers pay more to live near rail, study finds
Nationwide analysis shows significant premiums near stations in London, Glasgow and Manchester, though the gap has narrowed since 2021.
Buyers in major UK cities are increasingly willing to pay a premium to live within easy reach of a train station, according to analysis by Nationwide Building Society.
The study found that in London, properties located within 500 metres of a railway station command an 8% premium compared with identical homes 1,500 metres away. On an average London property value, that premium translates to about £42,700 when compared with a similar home 1,500 metres distant. The premium falls at greater distances: 3.5% for homes about 1,000 metres from a station and 5.6% for properties about 750 metres away.
Across the rest of the study area, Glasgow shows a meaningful though smaller proximity premium. Within the Greater Glasgow area, the analysis notes roughly 155 railway stations and 15 subway stops in the city centre, with properties within 500 metres of a station priced about 4.6% higher than identical homes 1,500 metres away. In Manchester, buyers within 500 metres of a rail line or Metrolink pay about 4.9% more than those 1,500 metres distant, equating to roughly £10,900 on average in the Greater Manchester area.
The report also tracks how these premiums have evolved since 2021. Station-based price premiums have declined in all three cities, reflecting broader shifts in work patterns since the pandemic. In Glasgow, the premium has fallen from 7.2% in 2021 to 4.6% today. London has seen a decline from 9.7% to 8% over the same period, with the rate broadly returning toward pre-pandemic levels of about 8.6% for a property within 500 metres of a station. Manchester’s rate has eased from 6.1% to 4.9% since 2021.
Industry observers tie the trend to changes in working arrangements. Jonathan Hopper, founder of Garrington Property Finders, notes that the premium remains but has narrowed as professionals gain more flexibility to work remotely part of the week. “The fall in premium since 2021 is a reflection of the post-Covid reality that many professionals have the option to work from home for some of the week,” Hopper said. “They’re still willing to pay a premium for a quicker or easier commute but the difference is less stark given that they may not need to commute in all five days a week any more.”
Jeremy Leaf, a former residential chairman of the Royal Institution of Chartered Surveyors, also cautions against overgeneralizing, but agrees that proximity to transport hubs continues to attract buyers. “It is hard to generalise too much as averages always hide ups and downs, highs and lows,” Leaf said. “Generally, movement follows the pattern of work, with people wanting to be nearer to stations and transport hubs and prepared to pay extra for that convenience. It can also be for family and personal reasons but it is usually driven by work. This is particularly the case for those who work unsocial hours or feel a sense of vulnerability the further away they are from a station or transport hub.”
Transport access remains a significant factor for buyers in these markets. Separately, Nationwide’s market research indicates four in five Londoners say being near a station was either fairly important or very important when deciding to buy or rent their current property. In Glasgow and Manchester, around six in ten respondents described proximity to a station as important. Londoners also show higher usage of their local station: nearly 60% use rail or the Tube more than once a week, compared with about 37% in Glasgow and 35% in Manchester.
Andrew Harvey, Nationwide’s senior economist, said the results reinforce the enduring importance of transport links in major urban markets. “London homebuyers continue to be willing to pay a significant premium for being close to a station compared with those in Glasgow and Manchester,” he said. “This is consistent with our market research findings and likely reflects the greater reliance on public transport in the capital.”
Taken together, the findings underscore that proximity to stations still matters to buyers, but the willingness to pay a premium has moderated as flexible work arrangements have become more common. The premium remains a real factor for pricing in dense urban centers, particularly in London, where public transport use is high and travel times to central destinations remain a key consideration for buyers.