New research has indicated that the property market in the capital has experienced such a boom that now the areas around 58 tube stations boast property prices of £1m or more.
This represents a five-fold increase since 2010, when only 11 stations had surrounding regions with property over £1m.
Data from the report conducted by Savills show that there has been a significant increase in the number of so-called property millionaires over the past five years. Predominantly, high-value property has been situated in Zone One of the tube network, but now, wealth is beginning to become more wide spread as competition increases.
In fact, the research shows that the capital’s underground network is the lifeblood of one of the most expensive markets in the world There are now millionaires located in Zone Six of the tube network, with the average house price in Moor Park standing at £1,605,714.
Findings from the Savills report have taken experts by surprise. Dominic Grace, head of residential development at the firm described the results as, ‘sobering,’ and said, ‘what it tells you is that a million pounds doesn’t buy you very much in London any more.’
Continuing, Grace said that the report, ‘tells us how much we now value convenient travel. Owning a £1m house no longer means you can afford a chauffeur. And if you are a high earner, you need to get to meetings quickly. You can budget your time much more accurately if you by Tube.’
Research for the report looked at sale prices within a 500-yard radius of each Underground station. Of the 58 million-pound-plus areas, 36 are in Zone One, 18 in Zone Two, three in Zone Three and one in Zone Six. On average, the typical property value in Zone One stands at £1.3m.
The full list of £1m plus tube stops in Zone One were found to be:
Unsurprisingly, Knightsbridge comes in at the top of the league. Bond Street, Green Park and others in the top-ten have some of the most expensive shops in the world, while Notting Hill Gate is a firm favourite for city workers.
Victoria has also moved into the top ten, with Ian Marris, head of residential development at Knight Frank observing that, ‘the huge regeneration projects taking place around the city stations is having a big impact. Shops, commercial activities and high house prices gather round the transport hubs.’
Tom Bill, head of London research at Knight Frank, said that, ‘the centre of gravity has moved east, as demand in the rest of London has exceeded supply.’ This is true when looking at areas such as Holborn.
£1m plus properties around Tube stations increase
‘The Zone One areas which first broke the £1m benchmark have now mostly trebled in value over the last decade,’ observes Lucian Cook, Savills’ head of residential research. ‘Clearly, international buyers are a strong presence here and the Zone Two areas have been pushed up by the domestic middle class. It shows the extent to which London has risen over the past 10 years, the effect of the Jubilee Line and the promise of Crossrail.’
Zone Two’s most expensive property regions are:
In Zone Three, the three regions where properties exceeded £1m were found to be:
Wimbledon Park, with an average house price of £1,155,376
Highgate, with an average house price of £1,053,172
Golders Green, with an average house price of £1,000,712.
In Zone Six, Moor Park boasted the only region with property prices over £1m, averaging £1,605,714.