Living close to a London Underground station comes with a hefty price premium.
New research by property agents CBRE has shown that homes within a five-to-seven minute walk of a Tube station have grown in price by almost 10 percent more than other properties nearby that are further away from the transport network.
According to CBRE, recent analysis by Nationwide revealed that home buyers are willing to pay a premium of £42,000 to live close to transport hubs.
Higher-than-average price growth
Now their own research shows that house price growth for properties within 500 metres of a Tube station is much higher than average.
For properties in zones 2 and outward, their statistics show that properties only a short walk to the Underground grow in price by an extra 2.1 percent every year, with the strongest growth of 3.1 percent on the Jubilee and DLR.
Homes near to National Rail and Overground stations also grow more than other properties in the same borough, this time by 1.7 percent every year.
Check out CEBR’s interactive map to see how each of London’s 11 Underground lines perform on house price growth.
Jennet Siebrits, head of UK residential research at CBRE, said: “For buyers, it’s good to know that paying a premium for transport convenience now is an investment that will appreciate greater value in the long term.
“With the introduction of the ultra low emission zone adding another charge on older private cars, there’s now even more impetus to switch to public transport.
“For the London housing market, that means the price growth uplift on homes near Tube stations may increase further.”