London leads UK in premium for homes near train stations, Nationwide finds
Study shows proximity to transport hubs remains valuable in major cities, though premiums have eased since 2021
Homes within 500 metres of a train station in major cities command a price premium, according to Nationwide Building Society’s analysis of the market. The study highlights London as the city with the largest premium for close proximity to transit, finding that properties within 500 metres of a station attract an 8 per cent premium compared with identical homes 1,500 metres away. At first glance, that premium translates to about £42,700 on average for a London property when set against a similar home 1,500 metres distant. The analysis also shows how the premium falls with distance: a property about 1,000 metres away from a station commands around a 3.5 per cent premium, while one located about 750 metres away commands roughly 5.6 per cent.
In Glasgow, which has the UK’s largest network of suburban rail outside London, the study found a 4.6 per cent premium for homes within 500 metres of a station compared with a like property 1,500 metres away. The Glasgow area contains roughly 155 railway stations and 15 subway stations in the city centre. The analysis puts a cash premium on proximity in Glasgow at about £8,800 for a home within 500 metres of a station versus a similar home 1,500 metres away. In Greater Manchester, buyers within 500 metres of a rail line or Metrolink paid about 4.9 per cent more than those 1,500 metres away, equating to an average premium of around £10,900.
Station premiums have eased since the peak seen in 2021, the analysis also shows. For London, the 500-metre premium has slipped from about 9.7 per cent in 2021 to 8 per cent today. In Glasgow, the premium has fallen from 7.2 per cent to 4.6 per cent, while Manchester’s declined from 6.1 per cent to 4.9 per cent over the same period. Analysts say the shift reflects a broader rebalancing as workers adopt more flexible patterns amid a post-pandemic landscape. Jonathan Hopper, founder of Garrington Property Finders, says the decline mirrors the reality that many professionals can work from home part of the week, reducing the imperative to commute daily. “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.” Estate agent Jeremy Leaf, a former RICS residential chairman, concurs that the pandemic has shifted price dynamics but emphasizes that proximity to stations generally remains a draw. “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.”
The broader transport-connectivity theme extends beyond prices. Nationwide’s market research indicates transport links remain important to buyers and renters in major cities. Four in five Londoners say being near a station is either fairly important or very important when choosing where to live, according to separate Nationwide findings. In Glasgow and Manchester, around six in ten respondents indicated that proximity to a station mattered. London residents also tend to rely on their local station more frequently, with nearly 60 per cent using rail or tube more than once a week, compared with about 37 per cent in Glasgow and 35 per cent in Manchester. Andrew Harvey, Nationwide’s senior economist, summarized the broader implication: “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 is consistent with our market research findings and likely reflects the greater reliance on public transport in the capital.”
The mix of higher property values near stations and a shift toward flexible work schedules suggests that proximity to transport hubs will continue to matter, even as the premium moderates. Analysts caution that affordability pressures and divergent local job patterns will continue to shape how strongly buyers prize station-adjacent locations. In the near term, buyers are advised to consider both the convenience of shorter or easier commutes and the overall cost of financing, as higher mortgage rates interact with pricing around transport links. While the premium may be smaller than it was at the pandemic peak, the appeal of being near a station persists for many buyers in Britain’s major cities, especially for those who value predictable commutes or who work outside traditional 9-to-5 hours.