London homebuyers pay premium to be near tube

London homebuyers pay on average an extra £20,000 for property 500m from nearest station (compared with a similar property 1,500m from station), according to the Nationwide Building Society.
 
Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "London has an extensive network of underground and surface rail lines which form an important part of the city's infrastructure. 34% of Londoners usually use either National Rail or London Underground services to travel to work, compared to 8% for Great Britain. Therefore, one might expect those buying property in the capital would prefer to live close to a tube or train station and be willing to pay a premium for this.

"Using the Nationwide House Price model we have assessed how property prices in the Greater London region vary in relation to the distance to the nearest tube or train station. We have isolated the specific impact this has over and above other property characteristics, such as property type, size and local neighbourhood type. Our figures suggest that a property located 500m from a station would attract a 7% price premium (approximately £20,300) over an otherwise identical property 1,500m from a station.

"The diagram below shows the price premium for identical properties progressively closer to a station. The value-added is measured relative to a property 1,500m from the nearest station. An identical property located 250m closer (so 1,250m from station) commands a 1.6% premium. Premiums increase as you move closer towards a station. For example, an identical property located 1,000m from a station would command a 3.4% premium, whilst at 750m this increases to 5.2%."