We all know transport is a huge factor that influences property prices in London. At Hunters West Hampstead, we like to think many other factors shape demand and what someone is willing to pay for a property in this part of the capital, but it is a crucial factor to consider.
A new study by Nationwide focuses on the “transport effect” on property prices, and it is still a critical factor in the housing market.
In the capital, a property found within 500 metres of a railway station or Underground line carries a significant premium compared to a property found 1,000 metres away.
West Hampstead has strong transport options
Here in West Hampstead, we have a couple of options for travellers. West Hampstead is the London Underground station, and it lies on the Jubilee Line, and is in the Travelcard Zone 2 area. The station lies in between Finchley Road and Kilburn Underground stations.
You also have the West Hampstead station, on the London Overground, and West Hampstead Thameslink station, within easy reach. Therefore, if you need to get around London, you have plenty of options to consider.
Nationwide’s Andrew Harvey says: “The pandemic does not appear to have reduced the desirability of being close to a station in London, despite reduced public transport usage. Indeed, our analysis suggests the premium has actually increased slightly compared with pre-pandemic levels. We’ve also seen a noticeable increase in the premium to be located close to a station in the Greater Glasgow area, but in Greater Manchester, homebuyers appear to be placing a little less value on being close to a rail or tram stop compared to before the pandemic.”
Do you need to live close to a transport hub?
The study finds a property within 500m from a London station carries a 9.7% premium, and for average prices in London, this equates to around £46,800.
A property found 1,000m away carries a 4.3% premium, and at 750m, the premium is 6.8%.
Andrew Harvey also said; “Our analysis suggests that there has actually been a slight increase in station premiums in London compared with pre-pandemic levels. In 2019-20, a property located 500m from a station attracted an 8.6 per cent premium over a comparable property 1,500m from a station. The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London. Average house prices are around £850,000 in areas where the nearest station is on the Circle line. Of all the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that it stretches towards the outer suburbs, with only a short section in central London.”
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters West Hampstead today for all your housing and letting needs.