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

19 April 2012

  • Our research points to a £27,000 premium for a property 500m from nearest station, compared with a similar property 1,500m from a station
  • Premiums appear to have increased since 2010
  • On average, London houses closest to Circle Line stations are the most expensive, those nearest the Metropolitan Line are cheapest

Commenting on the figures, 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 500m from a station attracts a 9% price premium (approximately £27,000 on a typical London home) over an otherwise identical property 1,500m 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.

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