Commenting Martin Gahbauer, Nationwide’s Chief Economist, said:
“London has an extensive network of underground and surface rail lines which form an important part of the city’s infrastructure. 34% of Londoners usually use either National Rail or London Underground services to travel to work, compared to 8% for Great Britain. Therefore, one might expect those buying property in the capital would prefer to live close to a tube or train station and be willing to pay a premium for this.
“Using the Nationwide House Price model we have assessed how property prices in the Greater London region vary in relation to the distance to the nearest tube or train station. We have isolated the specific impact this has over and above other property characteristics, such as property type, size and local neighbourhood type. Our figures suggest that a property located 500m from a station would attract a 7% price premium (approximately £20,300) over an otherwise identical property 1,500m from a station.”
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