How has the London Night Tube affected house prices?
by Housesimple on 9th September 2017
It’s been a year since Transport for London (TfL) started their overnight London Underground services. The 'Night Tube' now ferries passengers on the Central, Jubilee, Northern, Piccadilly and Victoria lines on both Friday and Saturday nights.
These plans came with assurances that nearby house values would increase. But has London's extra night shift brought home the bacon for the city's homeowners?
In 2014, an impact assessment promised that new overnight services would mean more people, businesses and tourists would flock to the affected areas, adding £360m to the local economy over 30 years.
As a result, experts predicted demand close to stations serviced by the Night Tube would soar, boosting house prices by 5-10% above those near daytime-only stations. Furthermore, 25% of Association of Residential Letting Agents members also expected nearby rents to rise, as landlords cashed in on the potential.
In August 2016, the Central and Victoria lines started running around the clock on Friday and Saturday nights. These were later joined by the Jubilee line and parts of the Piccadilly and Northern lines.
What's more, there are plans to expand the Night Tube even further. Overground trains between New Cross Gate and Dalston Junction will have their own extended service from December 2017, which will include routes between Highbury and Islington in 2018. More lines are likely to join by 2021.
Like Crossrail, the Night Tube could make a real difference to local economies and create new property hotspots. Generally though, trends indicate that the cheaper the area is, the higher the demand – and the greater the price rises.
Redbridge had the 10th-highest growth rates in the country last year, with property prices rising by 14.4%. Burnt Oak saw a 12% increase, while Edgware and Kennington registered a 10% jump. All of which easily exceeded the London average of 3.7%.
There’s room for more growth, too. Since it only runs on weekends, the Night Tube is only providing minor opportunities for younger demographics and tourists who use the services for socialising on weekends. It currently does little for those with jobs in the city centre.
Industry pros say that extending it to midweek would make it more beneficial to the capital's shift workers and boost prices much more. Spreading to areas where property is less pricey could compound the effect. So there's plenty of investment potential still to come, as long as London plays its cards right.