House prices in London: buyers are willing to pay an average of £43,000 more for homes close to a Tube or railway station
Londoners are prepared to pay an average of £43,000 more for their homes to be within a five-minute walk of a Tube or railway station, research reveals today.
The study compared prices of homes within 500 metres of a station — equivalent to a five-minute brisk walk — with those of a similar property nearly a mile away.
On average buyers were prepared to pay 9.4 per cent more for easy access to public transport, equivalent to a £42,900 premium, according to the analysis by lender Nationwide.
The findings also showed that Londoners place far more weight on proximity when compared with buyers in other major British cities.
Mancunians were only prepared to pay 7.8 per cent more to be close to a Metrolink or railway station, while Glaswegians would stump up only an extra 3.8 per cent to be close to a rail or subway station.
London’s best-connected boroughs
The building society’s report also showed that the best connected boroughs were Camden, Tower Hamlets and Kensington & Chelsea, where 75 per cent of properties are within 500 metres (1,640ft) of a station.
At the other end of the scale fewer than 20 per cent of homes in Havering, Bexley, and Barking and Dagenham are that close to rail or Tube links.
House prices along the Tube network
The line with the most expensive homes along its route is the Circle, also one of the least popular with commuters because of its poor reliability.
Prices of homes along the Circle line average £801,000, followed by the Bakerloo line with an average of £624,000.
Of the main Underground routes, the Metropolitan had the lowest average prices of £439,000, although the prices on the routes run by Transport for London Rail were even lower at £359,000.
Andrew Harvey, the Nationwide’s senior economist, said: “The lowest average prices among TfL-served routes are currently found where the nearest station is operated by TfL Rail, ahead of the introduction of Crossrail services.
“This currently comprises two branches: a service from Liverpool Street to Harold Wood [Havering]… and from Paddington to Heathrow via Ealing.”