The value of homes within 500m of a London Underground stations has risen by 67% in the past decade, according to new research from price comparison site Service Octopus.
According to the research, one of the most lucrative lines in London is the Victoria line. A property next to Walthamstow Central that cost £268,000 in 2007 would now sell for £450,000 — a 125% increase in value!
Jennet Siebrits, head of UK residential research at CBRE, said
“With the introduction of the ultra-low emission zone adding another charge on older private cars, there’s now even more impetus to switch to public transport. For the London housing market, that means the price growth uplift on homes near Tube stations may increase further”
It is also desirable for the wealthiest home-owners due to their being an infrastructure for their fleet of domestic staff to travel to-and-from their workplace.
Reflected in Other Large Cities
London is the most extreme example, but the trend is reflected in other large cities. Glasgow has the largest network of suburban rail lines outside of London, and properties 500m from a station attract a 6 per cent premium compared to those further away. In Manchester, there is a reported 4.6 per cent premium under the same circumstance.
Crossrail – Elizabeth Line
With the new Crossrail route coming close to completion, also known as the Elizabeth line, it is set to significantly improve commuting times from eastern and western areas into London.
This has already been having a noticeable effect on property along the route. According to Zoopla, since work began on Crossrail in 2009, homes close to stations on the new line have gone up by an average of £187,727!
Lawrence Hall of Zoopla has said: “With just under two years to go until the line is fully operational the impact on property values close to the 40 stops is becoming clear. Proximity to transport is one of the key requirements when Londoners and commuters look to buy property.”
With a further ‘Crossrail 2’ project now under deliberation, it could be worthwhile keeping an eye on how the proposals develop. It is clear that any London property near public transport developments (not including airports) can still be seen as a smart investment in today’s unpredictable market.
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