those who work in England’s capital city, transport
links have a major impact on where they choose to
live. One of London’s biggest draws is the opportunities
it presents, such as higher average incomes and greater
job opportunities. City centre employment is one of
the major reasons that people immerse themselves in
the hustle and bustle of city life, so being able
to get to headquarters quickly and easily is a commodity
that’s much sought after.
a result, transport links have a major effect on property
prices. The city is vast and sprawling, and the London
Underground is the string that connects the dots,
holding it all together. This phenomenon is not exclusive
to the capital; in every major city, properties on
commuting routes command the highest prices. The majority
of employers are located in the centre, so everyone
wants to be in the midst of the action.
if you want access to the heart of London, how much
will this hot commodity cost you?
A Hot Commodity
you were to head to the capital city today in search
of a property to rent, chances are that you would
see a major price disparity between very similar properties
based on their location. This is not unusual; a number
of factors influence home values, from their postcode
to their proximity to shops and eateries, local schools
and the owner/renter demographic.
to a commuting route also has its part to play, and
in London this is largely determined by a property’s
closeness to the London Underground. A study
by Wetherell in 2013 indicated that a difference in
proximity of just one tube stop from the centre could
mean a price disparity amounting to tens of thousands
of pounds between similar properties; the difference
between two zones was even greater.
Rental Prices by Zone
to data from HomeLet,
the economic downturn seems to have exacerbated this
effect. This phenomenon has triggered a change in
commuting trends in London, with many workers opting
to travel a shorter distance – 3 miles on average
– in order to reach their place of employment.
This has driven up prices in Zone 1, which includes
the city’s major business and financial sectors,
and so employs millions. House prices have risen by
a dramatic 37 per cent in the last year alone, and
52 per cent since 2010, as properties within this
area have become ever more sought after. Conversely,
the results have also been felt in Zone 8, which is
much further from the action, with property prices
having fallen 3 per cent since 2013.
the economy showing the first tentative signs of recovery,
it will be very interesting to see how this impacts
commuting trends and, importantly, property prices
for central and outlying zones going forward into