Circle Line stations have the highest priced homes in area with average property on market for £852k

Circle Line stations have the highest priced homes in London with the average property on the market for £852,000 – while buyers in the capital face a typical premium of nearly £50,000 to live closer to Tube or rail stops, a study has found.  

Nationwide Building Society published the findings today after comparing house prices within 500 metres (0.3 miles) of the nearest metro or railway station with similar properties 1.5km (0.9 miles) away.

It found that people in London pay a typical £46,800 premium to be close to a station, while people in Glasgow pay an average of around £11,400 more, while those in Greater Manchester pay a premium of about £11,000.

Researchers found that premiums to be close to a station have been increasing in London and Glasgow in recent months despite the guidance on working from home across the country, but have shrunk in Manchester.

It comes as separate research revealed homes in England’s market towns are now worth £36,000 more than other locations, with buyers typically forking out double for the privilege in the most sought-after spots.  

Nationwide’s senior economist Andrew Harvey said: ‘London home buyers still appear willing to pay a significant premium for being close to a station compared with those in Glasgow and Greater Manchester.

Average house prices are about £850,000 in areas where the nearest station is on the Circle line, which serves wealthy areas

Nationwide Building Society published the findings for London (pictured) as well as other cities after comparing house prices within 500 metres (0.3 miles) of the nearest metro or railway station with similar properties 1.5km (0.9 miles) away

Nationwide Building Society published the findings for London (pictured) as well as other cities after comparing house prices within 500 metres (0.3 miles) of the nearest metro or railway station with similar properties 1.5km (0.9 miles) away

The interior of a two-bedroom flat on the market for £999,950 within 1000m (0.62 miles) of Royal Oak Station, which serves the Circle Line. Nationwide Building Society published the findings today

The interior of a two-bedroom flat on the market for £999,950 within 1000m (0.62 miles) of Royal Oak Station, which serves the Circle Line. Nationwide Building Society published the findings today

The exterior of the two-bedroom flat within 1000m (0.62 miles) of Royal Oak station. 'Of all the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line', said Mr Harvey

The exterior of the two-bedroom flat within 1000m (0.62 miles) of Royal Oak station. The study found that people in London pay a typical £46,800 premium to be close to a station

The kitchen area of an £800,000 two-bedroom flat located around 1,250m (0.8 miles) from Royal Oak station

The kitchen area of an £800,000 two-bedroom flat located around 1,250m (0.8 miles) from Royal Oak station

The entrance to Campden Hill Towers, where a two-bedroom flat located around 1,250m (0.8 miles) from a Circle Line Station is on the market for £800,000

The entrance to Campden Hill Towers, where a two-bedroom flat located around 1,250m (0.8 miles) from a Circle Line Station is on the market for £800,000

‘This probably reflects the greater reliance on public transport in the capital, with residents less likely to drive.

‘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, home buyers appear to be placing a little less value on being close to a rail or tram stop compared to before the pandemic.’

He added: ‘It is possible that priorities for home buyers in the Greater Manchester area have changed during the pandemic, with a greater emphasis placed on things like local amenities and access to outdoor space.’

Looking at London, Mr Harvey said: ‘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 (£474,000). This probably reflects that it stretches towards the outer suburbs, with only a short section in central London.’

A two-bedroom flat on sale for £1.25million within 500m (0.31 miles) of Royal Oak station, which serves the Circle Line

A two-bedroom flat on sale for £1.25million within 500m (0.31 miles) of Royal Oak station, which serves the Circle Line

The living area inside the £1.25million two-bedroom flat. The study comes as millions of Britons could be told to continue working from home past June 21 as the price for lifting the rest of the lockdown

The living area inside the £1.25million two-bedroom flat. The study comes as millions of Britons could be told to continue working from home past June 21 as the price for lifting the rest of the lockdown

The exterior of a two-bedroom flat on the market for £1.45million and within 250m (0.15 miles) from a Circle Line station

The exterior of a two-bedroom flat on the market for £1.45million and within 250m (0.15 miles) from a Circle Line station

A bedroom inside the £1.45million flat. It comes as separate research revealed homes in England's market towns are now worth £36,000 more than other locations

A bedroom inside the £1.45million flat. It comes as separate research revealed homes in England’s market towns are now worth £36,000 more than other locations

The study found that people in London pay a typical £46,800 premium to be close to a station, while people in Glasgow pay an average of around £11,400 more, while those in Greater Manchester pay a premium of about £11,000

The study found that people in London pay a typical £46,800 premium to be close to a station, while people in Glasgow pay an average of around £11,400 more, while those in Greater Manchester pay a premium of about £11,000

Greater Manchester house prices near stationsGlasgow house prices near stations

Nationwide’s study looked at house prices based on the distance to a station in Greater Manchester (left) and Glasgow (right) 

It comes as millions of Britons could be told to continue working from home past June 21 as the price for lifting the rest of the lockdown.

Last Friday it emerged that ministers are thought to be examining keeping the guidance for people to avoid unnecessary trips to offices and other workplaces to offset the spread of the Indian variant.

They were said to be hoping that this mitigation could allow the rest of the lockdown rules due to be lifted in less than a fortnight as planned, despite fears that hospitalisations and deaths could increase. 

Last month senior government advisers warned against promoting a return to the office in summer amid fears it could encourage a third coronavirus wave.

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