A recent press-release from Nationwide Building Society confirms the Londoners can expect to significantly pay more if they want to live close to a tube or train station, and it seems that the price differential is increasing.
Nationwide’s figures show that homebuyers in the London area may have to pay up to a £26, 000 premium for a home within 500 metres of the nearest station, compared with a similar property 1, 500 metres away from a station. This just shows how much value commuters put on not having a long walk to catch a train.
The tube line you are on also affects house prices. Average prices for homes near the Circle line are the most expensive – hardly surprising as this line serves central and West End London – but there are some surprising differences between other tube lines.
The Nationwide report indicates that houses near Bakerloo, Victoria and Northern lines stations are the most expensive, with average prices over £426, 000. However those near Metropolitan and Central stations are the cheapest, with average prices below £329, 000.
As tube lines generally serve a mixture of localities, including central areas, these differences seem somewhat difficult to account for. It would seem unlikely that the level of service on any line has a great effect. Nevertheless the statistics may repay careful study by anyone looking to buy property with an eye to an increasing its value in future.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“As the London Underground celebrates its 150th anniversary, Nationwide has found that living close to a tube or railway station can demand a hefty premium on the price of a house (after taking account of other property characteristics, such as property type, size and local neighbourhood type).
This price premium is two percentage points higher than when we conducted similar research in 2010, where the data suggested a 7% premium. “