May 2013 – Part 2
Mahatma Ghandi: “There is more to life than increasing its speed”
The London Underground recently ran a poster campaign with this famous quote in order to promote the tube network.
The 150 year old London underground network first opened in 1863 (the Metropolitan Line), and the first Tube map was designed in 1897. The network now serves 270 stations on 11 lines and has 250 miles (402 kilometres) of track. It carries more than one billion passengers per year, and Londoners make around three and a half million journeys on the tube network each day. It is quite simply an iconic and essential part of London life.
Creating London’s first ever London Underground-Property Map
Despite the central role that the underground system plays in Londoners everyday lives, no-one had made a comprehensive study of the interplay between tube stations, tube lines, tube locations, property values and price rises/falls. To address this issue Wetherell, in association with Data Loft, have produced the capital’s first ever London-Underground Property Map, which reveals flat prices and rental values for postcode-based catchment areas around each of the London-Underground tube stations.
What we have found from our new property tube map
The new Wetherell London-Underground Property Map is fascinating revealing for the first time ever, London’s most expensive tube stations and underground lines, as ranked by the value of residential properties around them. It also shows Londoners the dramatic property price and rental rises and falls as tube travellers pass between stations, with massive price changes often occurring in a short distance between just one or two tube stops.
Owning a home next to the “right” tube station can result in a Londoner benefiting from “property gold and riches”, whilst living just a few stops down the line by another can mean owning a home which is just a third of the value of the former. Likewise, if you are renting you could live just a few tube stops away from a friend, yet enjoy a rent that is much lower than theirs.
Our methodology and approach
To create this new tube map, Wetherell commissioned property research consultancy Data Loft to undertake an extensive survey; analysing sales and rental values for two bedroom apartments (as reported by the Land Registry, Lonres & Zoopla) over a 12 month period. The sales/rental data used was for the lowest level of London-Postcode sector immediately surrounding each Underground Station (a circa 0.25 mile radius). The research focused on the 63 underground stations within Prime Central London, the Underground’s Zone 1 Fare Area covering Earls Court to Aldgate and Kings Cross down to Elephant & Castle. The results were tabulated, ranked and artworked onto a London-Underground Transport Map.
London’s top-10 most expensive tube stations
Ranked by property values, Knightsbridge is London’s most expensive tube station (2 bed flat ave price £2.67m; £1,252 p.w. rent). Others in the top-10 most expensive tube station list include Hyde Park Corner by Belgravia (2 bed flat ave price £1.71m; £936 p.w. rent), Sloane Square in Chelsea (2 bed ave price £1.44m; £820 p.w. rent), Green Park in Mayfair (2 bed ave price £1.27m; £1,016 p.w. rent), High Street Kensington (2 bed ave price £1.19m; £822 p.w. rent) and Regent’s Park (2 bed ave price £1.18m; £714 p.w. rent).
The most expensive & prestigious tube line
Within Zone 1, the Piccadilly line is London’s most expensive and prestigious tube line, as ranked by the value of property values at each of the stations along the line. This is followed by the Circle, District and Central lines. The least valuable tube line in Zone 1 is the Northern Line.
Jumps in property values
Other fascinating findings revealed by the new Wetherell London-Underground Property Map are the huge jumps in property values that occur between the relatively short distance of just a few stations. Travel just five stops from Elephant and Castle to Piccadilly Circus and prices rise from just £361,300 to £1.03 million, an increase of 186%. Likewise, travel just three stops from Southwark to Green Park and prices rise from £511,800 to £1,275 million, an increase of 150%.
Leave the West End & prices fall of a cliff
Another interesting finding from the new Wetherell London-Underground Property Map are the significant “price cliffs” that arise across the tube network, The cliffs are large falls in property values that can occur virtually between one tube station and another. The most striking of these is the property “price cliff” formed by the Northern Line. Within Zone 1, the tube stations to the West of the Northern Line predominantly have values of over £1 million. However, to the East of the Northern Line (from Warren Street to Embankment), tube station values drop dramatically, to values of circa £400,000 to £500,000. Between Travel Zones 1 and 2 property values drop again.
The West End is the place to be
The Wetherell London-Underground Property Map shows that East London still has a long way to go before it can ever rival the West End and West London as offering the most sought after places in which to live. Even in and around the City of London residential values remain as low as £396,455 (Mansion House), indicting that City workers still prefer to live in West London or the West End, and commute into work.
Locations with the highest volume of property sales
Another interesting finding is the tube stations which have the highest volumes of property sales over the last 12 months. Sloane Square in Chelsea comes top. However other tube station catchment areas enjoying high volumes of sales include Knightsbridge, Notting Hill Gate, Bond Street, Lancaster Gate and High Street Kensington. Significantly, areas undergoing regeneration and new development have also enjoyed high volumes of sales over the last 12 months including Kings Cross station, Victoria station, Bayswater and Marylebone.
Knightsbridge & Mayfair are London’s best rental locations
For interested landlords, Knightsbridge and Mayfair are the locations with the highest rental values in London, with Knightsbridge at £1,252 p.w. and Green Park (Mayfair) at £1,016 p.w. and are also the only locations in central London where rental values can consistently command values of over £1,000 p.w. Across the rest of the Prime Central London, rental values at the various tube stations range from circa £550 p.w. to £950 p.w. Again, East of the Northern line there is a “price cliff” with rental values dropping to circa £100 p.w. to £200 p.w. lower than tube stations West of the Nothern line.
Our new Wetherell tube map gives property professionals and Londoners an easy way to view dramatic property price and rental rises and falls between tube stations. Its staggering to see that just a few stops along same the tube line can mean rises and falls in property values worth hundreds of thousands and even millions of pounds. This exciting new map shows the value of property in London’s West End and West London.
It also gives Londoners the ability to explore whether they are living close to a “good value” tube station or “poor return” tube station. Property marketing people can use clever imagery, glossy brochures and smart marketing suites to help “talk up” homes in secondary underperfoming locations. However, one thing they cannot do is change the name of their local tube station. So the tube-linked data we have produced provides an easy and sound way for Londoners to benchmark property values in markets where they are interested in buying or renting property.