London homeowners pay a significant transport premium

London homebuyers pay a significant premium to live close to a tube or train station according to research from Nationwide Building Society.

The research showed: Londoners pay, on average, a £26,000 premium for a property 500m from nearest station, compared with a similar property 1,500m from a station.

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.”

Peter Lawrence of Lawrence Rand said: “This research attempts to put a quantifiable figure on what has always been a key factor in house prices; the ease of access to good transport facilities.

In the Ruislip and Pinner area, along with great schools and other facilities, good transport and access to central London is a major factor in making the area as popular as it is.”