If you’re thinking about somewhere to develop, or live, around London you are probably going to want to choose a position near a tube station, according to Nationwide it will cost you an extra £42,000.

 

The Nationwide Building Society has just release finding that show a home in London that’s located within £500 metres of a Tube Station would expect to make an additional £42,000 more.

 

The building society’s research goes on to demonstrate how the house price increase depending on the distance from the station with averages around:

 

  • 500 metres - 10.5% increase
  • 750 metres - 7.6% increase
  • 1,000 metres - 4.9% increase
  • 1,250 metres - 2.3%

Saying that, there aren't a lot of homes that are that far away from a station with only around 6% of homes are more than 1,500 metres from a station.

Here are the Nationwide’s figures for average home prices within 500 metres of stations on the following tube lines:

 

  • Circle - £802,601
  • Bakerloo - £550,762
  • Northern - £530,506
  • Victoria - £518,512
  • Jubilee - £503,589
  • Overground - £484,630
  • Hammersmith & City - £478,624
  • District - £461,683
  • Piccadilly - £442,594
  • DLR - £440,704
  • Central - £373,950
  • Metropolitan - £369,417

For developers working in London this should give some reassurance and some insight into where to buy and develop and although recent figures suggest there has been a cooling of property price growth in Great London and the South East it’s unlikely the prices of homes in these areas are going to decline anytime soon, margins may just be a bit tighter.

Understanding where to develop is, as always, the key to maximising that margin.