Mind the gap: how living near a tube station affects house price growth
CBRE has found that house price growth is higher than average for properties within 5-7 minutes' walk of a tube station. See how each line has performed and how this could affect your property.
The London Underground first opened with the Metropolitan line in 1863. Fast forward 156 years and today it carries over 5 million passengers a day on 12 lines, with the vast majority of Londoners depending on the tube for their daily commute.
Recent analysis by Nationwide showed that residents are prepared to pay a £42,000 premium to live close to transport hubs. CBRE has also found that living within 5-7 minutes' walk of a tube station means that house price growth is higher than average.
We calculated the long-term average annual price growth of properties in zones 2 and outwards, situated within 500m of a tube station and compared it with growth in the wider borough; our statistics show that properties close to a tube station grow by an additional 2.1% per annum. The results were broadly consistent across all tube lines with the strongest growth profiles of 3.1% on the Jubilee line and the DLR.
We also found a similar uplift in growth for properties close to National Rail and Overground stations at 1.7% per annum.
Disclaimer: Proximity to transport links is not the only factor that boost property growth. For example, CBRE research has found that the effective placemaking and regeneration also generate a price growth premium.