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London property prices set to stay “on track”

London property prices set to stay “on track”

Category: Mortgages

Updated: 19/08/2016
First Published: 19/08/2016

The night tube service is set to start this weekend, with services on the Central and Victoria lines pulling all-nighters, followed by the Northern, Jubilee and Piccadilly lines in the autumn. But what kind of impact will this have on property prices in the area? Online estate agent eMoov.co.uk has taken a closer look.

Night Tube property prices

Typical house prices in London are already extortionate, but it seems that those in the area of the Central and Victoria tube lines are even higher, with the average house price across the two clocking in at a whopping £883,690, some £300,000 more than the London average.

The average along the Central tube line comes in just shy of this at £858,034, while the Victoria line is even more expensive at an average of £939,812 – and unsurprisingly, it's stations in Zone 1 that dominate the most expensive list across the two lines.

Marble Arch is the most expensive tube stop across the service, with average property prices standing at an eye-watering £2.5m. This is closely followed by Bond Street (£2.3m), Holland Park (£2.3m) and Notting Hill Gate (£2.3m), while Oxford Circus and Tottenham Court Road are just shy of the £2m mark with typical properties worth £1.9m.

After that, Pimlico, Victoria and Green Park all have average house prices just below £1.7m, while Holborn completes the top-10 most expensive Victoria and Central line stations with a typical property price of £1.4m.

It's a different story at the other end of the scale, as although the least expensive stations are still high by national standards, their properties are far more affordable than some areas. For example, Tottenham Hale is the cheapest stop with an average price of £347,389, followed by properties around Gants Hill and Newbury Park (£362,303); Stratford (£362,886); Barkingside, Fairlop and Hainault (£368,993); Leyton (£400,885) and Blackhorse Road and Walthamstow Central (£435,906).

Price rises?

The picture is less clear in terms of price rises. The capital has been hard hit by economic changes in recent months, particularly the high-value sector of the market, which means that some areas have actually seen prices fall.

For example, property values across the Central and Victoria lines have increased by an average of 3% in the last year, and some areas saw prices rise even more than that, with properties around the Warren Street and Euston stations rising by 8% year-on-year.

However, Chancery Lane has seen property prices fall by a significant 6%, and properties around Holborn and Bank aren't far behind, with both areas seeing typical prices fall by 5%. Others to suffer marginal drops include Vauxhall (-0.4%), St Paul's (-0.1%) and Liverpool Street (-0.1%), so despite headline figures sounding robust, things aren't so clear-cut.

"In London in particular, property close to a good transport link such as an underground station will always command more where price is concerned," said Russell Quirk, CEO of eMoov.co.uk. "In fact, transport links have almost become an additional feature of the property itself and a great bargaining chip during the house selling process.

"The introduction of the night tube service should only help boost the value of the properties surrounding stations due to benefit from the service."

The level of demand for properties in such areas will undoubtedly have a positive impact in the months to come, and as the research found, many areas are already experiencing a surge in demand from house-hunters. If you're looking to benefit, it could be a great time to get involved – mortgage rates are at record low levels, and if you've got the right deposit to fund a purchase of this type, get on board!

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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