The launch of the 24-hour tube service is pushing up prices of properties close to stations on the all-night lines, an online estate agency revealed.
The tube will run past midnight on the Central and Victoria Lines starting from Friday August 19, making it possible for Londoners to avoid long journeys on night buses. The 24-service will then be introduced on the Piccadilly, Jubilee and Northern lines in autumn.
Online estate agent eMoov has taken a look at the average property price across the two lines due to open on Friday, as well as the increase in value over the last year and the area’s rate of demand.
It found that property values across the Central and Victoria line night service have increased by 3 per cent, on average, in the last year. Stations that have enjoyed the largest increase are Warren Street and Euston, both on the Victoria line, with property values up 8 per cent.
Property demand across the initial night tube service is currently at 25 per cent, with average house prices along the central London section of these lines reaching more than £885,000, almost £300,000 more than the average property price for the capital.
Tottenham Hale, in zone 3 on the Victoria line, is the cheapest area in which to buy a home along the Night Tube route at £347,389. Demand for property in the area is at 56 per cent over, making it also the most popular spot on the network.
Russel Quirk, founder and chief executive of eMoov said that in London transport links have almost become an additional feature of the property itself.
“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 great thing about the underground and the night service itself is that you don’t have to live centrally to benefit, you can live out in Zone 4 or beyond and still benefit, not only from the night tube but the cheaper cost of property,” he said.
The online estate agent is not only one predicting house prices will rise.
Strutt & Parker, estate agent, believe prices will rises on homes within a 10-minute walk of a number of stations over the next 12 months, according to the Evening Standard.
“The stops on the end of the Night Tube lines will be of particular appeal to the first-time buyer and the younger demographic who enjoy London’s nightlife and will like not having to spend a fortune on taxis late at night,“ Dominic Price, a partner at Strutt & Parker, told the publication.
Letting agents also warned there will be rent rises around tube stations benefiting from the 24 hours service. Residential areas at the end of the Night Tube lines that could be affected include Redbridge, Morden, Neasden and Barnet, according to a survey by the Association of Residential Letting Agents.
Transport for London estimates 200,000 people will use the service each weekend.
TfL expects it to take three years for the night service to break even, but the Mayor of London said it would boost the economy by £360 million.
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