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

11 January 2013

  • £26,000 premium for a property 500m from nearest station, compared with a similar property 1,500m from a station
  • On average, London houses closest to Circle Line stations are the most expensive, those nearest the Central Line are cheapest
  • London Overground link provides boost to house prices in Southwark

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:

"As the London Underground celebrates its 150th anniversary, Nationwide has found that living close to a tube or railway station can demand a hefty premium on the price of a house (after taking account of other property characteristics, such as property type, size and local neighbourhood type).

"A property located 500m from a station attracts a 9% price premium (approximately £26,000 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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