Here’s how much it costs to buy a home near London’s biggest tube lines
Londoners living near popular tube lines are paying a significant house price premium as households still attach significant value to transport links.
New data from Nationwide shows buyers can expect an additional premium of £46,800 for a property 500 metres from the nearest station, compared with a similar property 1,500m (1.5km) away.
By comparison, people living in Glasgow and Greater Manchester can expect to pay a premium of £11,400 and £11,000 respectively for the same distance.
“London homebuyers still appear willing to pay a significant premium for being close to a station compared with those in Glasgow and Greater Manchester. This probably reflects the greater reliance on public transport in the capital, with residents less likely to drive,” said Andrew Harvey, Nationwide’s Senior Economist.
“The pandemic does not appear to have reduced the desirability of being close to a station in London, despite reduced public transport usage. Indeed, our analysis suggests the premium has actually increased slightly compared with pre-pandemic levels.”
The group’s research indicates that homebuyers in the capital continue to pay a significant premium to be close to a station.
A property located 500m from a station attracts a 9.7% price premium (approximately £46,800 based on average prices in London) over an otherwise identical property 1,500m from a station.
“Our analysis suggests that there has actually been a slight increase in station premiums in London compared with pre-pandemic levels. In 2019-20, a property located 500m from a station attracted an 8.6% premium over a comparable property 1,500m from a station.
“It would appear that those buying in the capital continue to value accessibility to rail and tube links. And while public transport utilisation remains well below pre-pandemic levels, TfL reports that the re-opening of shops, pubs and restaurants has helped boost Tube usage.”
Where to buy
The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London. Average house prices are around £850,000 in areas where the nearest station is on the Circle line.
Of all the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that it stretches towards the outer suburbs, with only a short section in central London.
The lowest average house prices amongst TfL served routes are currently found where the nearest station is operated by TfL Rail, ahead of the introduction of Crossrail services. TfL currently runs services from Liverpool Street to Harold Wood (and onward to Shenfield in Essex) and from Paddington to Heathrow Airport (via Ealing) and also to West Drayton (and onward towards Reading in Berkshire).
The lower prices for TfL Rail may reflect that most of these stations are outside of central London and that delivery of the Crossrail project remains behind schedule, Nationwide said.
