Underground impacts house prices

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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

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