Wednesday, 17 May 2017

1,308,536 People use Grantham Train Station a year - How does that affect the Grantham Property Market?

It might surprise you that it isn’t always the poshest villages around Grantham or the swankiest Grantham streets where properties sell and let the quickest. Quite often, it’s the ones that have the best transport links. I mean, there is a reason why one of the most popular property programmes on television is called Location, Location, Location.  

As an agent in Grantham, I am frequently confronted with queries about the Grantham property market, and most days I am asked, “What is the best part of Grantham and its villages to live in these days?”, chiefly from new-comers.  Now the answer is different for each person. A lot depends on the demographics of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport – of which the railways are very important.

Official figures recently released state in total, 1,797 people jump on a train each and every day from Grantham Train station. Of those, 655 are season ticket holders. That’s a lot of money being spent when a season ticket, standard class, to London is £7,020 a year.

So, if up to £4.59m is being spent on rail season tickets each year from Grantham, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place. That means demand for middle to upper market properties remains strong in Grantham and the surrounding area and so, in turn, these are the type of people whom are happy to invest in the Grantham buy to let market – providing homes for the tenants of Grantham…

Bottom line is property values in Grantham would be much lower, by at least 3% to 4%, if it wasn’t for the proximity of railway station and the people it serves in the town

And this isn’t a flash in the pan. Rail is becoming increasingly important as the costs associated with car travel continue to rise and roads are becoming more and more congested. This has resulted in a huge surge in rail travel.  

Overall usage of the station at Grantham has increased over the last 20 years. In 1997, a total of 607,467 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, that figure had risen to 1,308,536 people using the station (that’s 3,594 people a day).

The juxtaposition of the property and the train station has an important effect on the value and saleability of a Grantham property. It is also significant for tenants, so if you are a Grantham buy to let investor looking for a property, the distance to and from the railway station is sometimes enormously significant.

One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out a property’s (which they are considering to let or buy) proximity to the train station. That is why Rightmove displays the distance to the railway station alongside each and every property on their website. 

For more thoughts on the Grantham Property market – please visit the Grantham Property Blog