Posted by A surveyor and member of the RICS (Royal Institution of Chartered Surveyors) have questioned the significance of the findings from the Nationwide Building Society report which was released last Friday. The report showed that the London residents pay up to 20,000 pounds extra in order to live nearer to a train or tube station. The Nationwide found that the flats and houses within 500m of a tube or train stain carry a seven percent premium compared to those further away that amounts, approximately, to an additional 20,300 pounds.
The values in the Greater London property region appear to get increasingly more costly the closer they are to a tube or train station. Average property prices were highest around the Circle line (London underground), reaching figures of almost 500,000 pounds, and the least costly were houses in the regions served by the Central line, only reaching a maximum value of 275,000 pounds.
The Royal Institution of Chartered Surveyors member, David Tropp said that he finds difficult to understand how reports like this could generalize on such a large scale. He also said that comparing all of the London in one report is not right for example Clapham North, which is totally different to somewhere like Hampstead. There should be thoroughness in every area since there are several factors which have to be taken into consideration, particularly for house investors; they have to assess a region in terms of who you are going to aim the property at.
Even though Mr. Tropp criticizes the report, he does not think that the property investors must totally dismiss the findings. He added the outcome seem quite obvious really, however as a rule property investors must look at what an area provides, and if it is closer to a transport link then certainly it would attract people who want a convenient way to get to work.
