London homebuyers pay a significant price to live close to a tube or train station

by Aaron Strutt

Apr 20 2012

London homebuyers pay approximately £27,000 more to buy a property within 500 metres of the nearest train or tube station. This is when compared to similar properties 1,500 metres from a station, according to the Nationwide Building Society.

Nationwide also says that property premiums appear to have increased since 2010 and houses closest to the Circle Line stations are the most expensive. Those nearest the Metropolitan Line are the cheapest.

Robert Gardner, Nationwide's chief economist, said: “We examined how the proximity to a tube or railway station impacted property prices in Greater London after taking account of other property characteristics, such as property type, size and local neighbourhood type.

“Our research illustrates that people are willing to pay a significant premium to be close to a station, and suggests that this premium has increased relative to two years ago when we last explored the issue.

“A property located 500 metres from a station attracts a 9% price premium (approximately £27,000 on a typical London home) over an otherwise identical property 1,500 metres 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.”

April 20, 2012