Underground impacts house prices
London homebuyers pay a significant premium to live close to a tube or train station
£26,000 premium for a property 500m from nearest station, compared with a similar property 1,500m from a station
On average, London houses closest to Circle Line stations are the most expensive, those nearest the Central Line are cheapest
London Overground link provides boost to house prices in Southwark
24 January 2013: 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).
“A property located 500m from a station attracts a 9% price premium (approximately £26,000 on a typical London home) over an otherwise identical property 1,500m from a station. This price premium is two percentage points higher than when we conducted similar research in 2010, where the data suggested a 7% premium.
Impact on house prices is greatest close to stations
“The diagram on the full report shows the price premium for similar properties at various distances from a tube or railway station relative to a property 1,500m from the nearest station. Premiums increase as you move closer to a station, as you would expect. A property located 1,000m from a station would command a 4.1% premium, whilst at 750m this increases to 6.3% and 8.8% at 500m from the station.
“Interestingly, only 6% of properties in London are more than 1,500m away from a station, and the vast majority of these are in outer suburban areas, where stations tend to be more spread out serving larger catchments...”
Read the full report here