Living close to good transport links has a huge impact on property prices as Londoners clamour for the shortest possible commute. But with the arrival of yet another branch of the Night Tube, a whole new set of districts in the city that never sleeps are due for a boost.
The Jubilee Line is now open for round-the-clock service on weekends, joining the Victoria Line and the Central Line networks – providing 24-hour transport from Stanmore to Stratford on Fridays and Saturdays.
Property prices along the Jubilee Line are on average £25,000 lower than the other two Night Tube lines. Yet research conducted by eMoov reveals that Bond Street is the most expensive station on the Jubilee route, with median prices of more than £2.3 million – nearly £2 million more expensive than the Jubilee line’s cheapest stop, Canning Town (£352,366).
Estate agents Savills compared house prices within a 500-metre radius of all Jubilee line stations and found that the biggest growth over the past two years has been in Zone 3 with average prices up by more than 34 per cent, compared to just 9.8 per cent in Zone 1.
The up-and-coming spot to watch: Canning Town
With average property prices of about £350,000, the most affordable area which benefits from the new 24-hour service is Canning Town. This east London area is currently undergoing huge regeneration, including a new £600 million “town centre” which is expected to be completed in 2024.
The E16 postcode is one of the most affordable in Zone 2 (although parts of it are zone 3). In Canning Town proper, north of the docks, prices drop even further. A terraced house costs around £300,000 for a two-up two-down, while a top floor three-bedroom penthouse at Rathbone Market costs around £650,000. Meanwhile, closer to the Royal Docks, three-bedroom penthouses are on sale for up to £1.85 million.
End of the line: Stratford
The Olympic champion of up-and-coming areas is set to benefit from a tripartite of transport revolutions: Night Tube stations on both the Central and Jubilee Lines and the impending high-speed Crossrail link, the Elizabeth Line, due to open in 2018.
House prices here are about £363,000, according to eMoov stats.
Frances Clacy, a research analyst at Savills comments: “What we can see here is proof that house prices in outer London have outperformed those in inner London particularly since the changes in stamp duty.
“It’s interesting to see that in fact it is around Zone 3 stations, as opposed to Zones 4 or 5, that we have seen the highest levels of growth. Homes located here strike the right balance between relative affordability and travel time into central London.”
A recent Savills/YouGov survey found that being close to public transport is crucial for tenants with 66 per cent of respondents in London rating a 10-minute walk to public transport as important.
Rents near Night Tube stations in Zones 3-6 have already risen by up to 20 per cent during the last two years, outstripping the average rate of growth across London by seven per cent.
“We definitely expect to see these areas increase in price more than the average over the next year or two. New transport improvements drive prices up, but you’ll generally see that first in sale prices,” says Matt Hutchinson, director of flat share site SpareRoom.co.uk.
Dan Parker, Head of Savills North and East London Lettings, comments: “The fringe areas of London are already outperforming prime central London in terms of rental growth. The opening of the night tube on the Jubilee line is only going to add to this – by making it safer, easier and quicker to get home, it’s likely to accelerate that growth.”
“There is a good pocket of affordability at the very northern end of the line, or if you’re looking to capitalise on the on-going regeneration of East London, West Ham and Stratford could make shrewd investments.”