Recent analysis by the lender, Nationwide, has discovered that on average, home buyers are prepared to pay 9.4% more for a property with easy access to public transport. Londoners are prepared to pay the equivalent of a £42,900 premium for a home within a 5 minute walk of a Tube or railway station. Prices of homes within 500 metres of a station were compared with similar properties nearly a mile away.
The report also indicated that people living in London place much more of an emphasis on this convenience factor, in comparison to their counterparts buying properties in other large British cities. For example, those living in Manchester were prepared to pay just 7.8% more to be near to a railway or Metrolink station whilst those living in Glasgow were only prepared to pay an extra 3.8% to be close to a rail or subway station.
The report from Nationwide also analysed the London boroughs with the best and worst access to public transport links. It determined that Kensington & Chelsea, Camden and Tower Hamlets were the best connected, with 75 % of properties being within 500 metres of a station, whilst Barking, Bexley, Dagenham and Havering had fewer than 20% of homes that close to either Tube or rail links
House price variations along the Tube network were also looked into. It was found that homes along the route of the Circle Line were the most expensive, coming out at an average of £801,000, whilst second most expensive on average, were homes along the Bakerloo Line. Despite the high average cost of Circle Line homes, the Circle Line itself regularly ranks as one of the least popular, due to the poor reliability of its service.
Lowest average prices of homes along the main Tube routes were found to be along the Metropolitan line, where the average price was £439,000. Lower prices, still, were to be found along the routes operated by Transport for London Rail, at an average of £359,000.
So, it’s clear, that for that little bit of extra convenience, particularly in London, you are going to have to stump up the cash!