Londoners 'pay 7% extra' to live by a tube station

Friday, 16, Jul 2010 07:00

Londoners pay a significant premium for the luxury of living near a tube station, according to the latest research.

Those living within 500m of an underground station pay on average an extra seven per cent for their home, when compared to a similar property that is 1,500m away from a station, according to Nationwide.

Considering current house prices that equates to an extra £20,300, while houses 1,000m away from a station are 3.4 per cent more expensive.

The lender has also established that this premium is at its highest around the stations on the Circle Line.

Reacting to the figures, the lender's chief economist Martin Gahbauer said that considering 34 per cent of London's use rail services to commute to work, it is no surprise that there is such a premium.

The average house price in the UK now stands at £168,719, according to data from Nationwide, reflecting a quarter-on-quarter rise of 1.9 per cent.