Proximity to London Underground boosts property prices
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London residents are paying £20,000 more for property 500m away from an Underground or train station compared with similar property 1,500m away.
The Nationwide House Price Model reveals that houses near a station attract a 7% premium, approximately £20,300.
Martin Gahbauer, chief economist at Nationwide, says 34% of Londoners use trains compared to just 8% of the UK.
He adds: “Using the Nationwide House Price model we have assessed how property prices in the Greater London region vary in relation to the distance to the nearest tube or train station. We have isolated the specific impact this has over and above other property characteristics, such as property type, size and local neighbourhood type.”
Property 1,250m from a station attracts a 1.6% premium on that 1,500m awa while an identical property located 1,000m from a station would command a 3.4% premium and at 750m this increases to 5.2%.
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Readers' comments (4)
Anonymous | 16 Jul 2010 4:28 pm
It's hardly rocket science, is it?
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www.BuyersAgentLondon.com | 17 Jul 2010 9:29 am
It's not just tube stations or train stations that people want to be near, there are many things people will pay higher prices for, being on or close to the river or parks, schools have the same effect when you move south of the river.
As a buying agent we have to take all of this into account when we work out comparison prices to ensure we are buying property for clients in a specific area at the best price compared to the local open market price.
John Aitken
www.BuyersAgentLondon.com
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Anonymous | 19 Jul 2010 10:00 am
Can we have a new Mortgage Strategy award category please for stating the bleeding obvious?
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David Winder | 19 Jul 2010 10:37 am
must be a slow news day.
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