United Kingdom
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.
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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.