Research by Nationwide published in 2012, reveals the extent to which a property’s proximity to a tube or rail station can affect its price. Buyers appear to be willing to pay a premium, typically of 9% which equals around £27,000 for an average London property, in order to live within 500m of a station. This is good news for those selling London property close to travel links.
Consequently, those areas which are well served with good transport links within 500m walking distance, can command much higher prices than an identical property which is up to 1500m away. As Robert Gardner, Nationwide’s Chief Economist comments, it is important to note that in London, only 6% of properties are more than 1,500m away from a station, so this level of difference shows much more clearly as you reach the outskirts.
The arrival of the London Overground to East London is one of the best examples of this in action as there have been significant price increases on property located near to the Overground stations, with prices in Hackney rising by at least 11%.
With the extension of the Northern line planned for the not too distant future, Battersea will seemingly be the next area to benefit from premium house prices when the new line opens.
Original article taken from Nationwide House Price Index, published April 2012