At Hunters Forest Hill, we know many factors influence demand for property in London, and what prospective buyers are willing to pay. However, transport might be the most crucial; and there are plenty of great options in the local area.
Forest Hill Station allows locals to travel with ease around the capital, and there are plenty of other nearby stations too. Sydenham, Honor Oak, West Dulwich and many more provide plenty of opportunity for people to connect with other areas of London.
New study confirms this link
A new study by Nationwide focuses on the “transport effect” on property prices, and it is still a critical factor in the housing market.
In the capital, a property found within 500 metres of a railway station or Underground line carries a significant premium compared to a property found 1,000 metres away. A similar phenomenon is found in Glasgow and Greater Manchester.
Nationwide’s Andrew Harvey says: “The pandemic does not appear to have reduced the desirability of being close to a station in London, despite reduced public transport usage. Indeed, our analysis suggests the premium has actually increased slightly compared with pre-pandemic levels. We’ve also seen a noticeable increase in the premium to be located close to a station in the Greater Glasgow area, but in Greater Manchester, homebuyers appear to be placing a little less value on being close to a rail or tram stop compared to before the pandemic.”
The study finds a property within 500m from a London station carries a 9.7% premium, and for average prices in London, this equates to around £46,800.
A property found 1,000m away carries a 4.3% premium, and at 750m, the premium is 6.8%.
People want to feel connected in and around London
Andrew Harvey also said; “Our analysis suggests that there has actually been a slight increase in station premiums in London compared with pre-pandemic levels. In 2019-20, a property located 500m from a station attracted an 8.6 per cent premium over a comparable property 1,500m from a station. The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London. Average house prices are around £850,000 in areas where the nearest station is on the Circle line. Of all the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that it stretches towards the outer suburbs, with only a short section in central London.”
- In Glasgow, the premium is 7.2% (or £11,400) compared to property located 1,500m from a station.
- In Greater Manchester, a property located 500m from a station carries a 6.1% premium, which equates to around £11,000.
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.