Property near tube station 21% more expensive

Tuesday, 30, Oct 2007 09:12

London homebuyers are considering property increasingly far away from tube stations as property prices near transport links boom.

Research released by HotProperty.co.uk finds property within a five minute walk of a tube station can be up to 21 per cent or some £80,000 more expensive than a similar property half an hour away.

As a result Londoners are considering property further away from transport.

According to the research up to one in eight buyers would consider a property 30 minute's walk, the equivalent of one and a half miles, away from a tube station.

Further to this, four per cent of Londoners, some 240,000 potential homebuyers, would consider purchasing a house an hour's walk from a tube station.

"These results suggest a significant proportion of people are willing to sacrifice being close to a tube station in order to be able to afford a property in London," commented HotProperty managing director Shawn Luetchens.

"Walking an hour to get a to a tube station seems an extreme measure, however with mortgage affordability at an all time low and little relief in sight, people are having to make compromises."

The research shows just how much difference location can make to property prices in London.

For every five minutes closer to a tube, house prices increase four per cent.

"Interestingly, however, one in four people were still not willing to buy property that was more than five minutes walk to a tube," concluded Mr Luetchens.

"Maybe they would change their minds if they considered that just walking an extra five minutes could save them up to £29,000 on the price of a property?"