The London Overground Line has added £80 billion to the value of homes within walking distance of its stations, a new study claims.
Research by residential agency, Hamptons International, looks at the impact of the London Overground line on housing stock within a 10 minute walk of its stations.
The findings show:
- The introduction and extension of the London Overground line has added an additional £18,000 per annum to the price of homes within a short walking distance of its stations
- Since the service was introduced in 2007, on average an additional £90,000 has been added to the value of homes close to stations – a total of £80bn over 5 years
- The average value of a home close to an Overground station (£580,000) has outperformed the wider London market (£440,000)
- The research analysed the relative performance of the areas surrounding each station along the line and identified those which had performed particularly well
It underlines findings from Nationwide released in August showing Londoners pay an average £42,000 premium for a property 500m from the nearest tube or train station, compared with a similar property 1,500m away.
Commenting on the study, Johnny Morris, head of residential research at Hamptons International says, “The introduction of the London Overground has had a significant effect on the housing markets it serves.
“Prices and activity have not only outperformed the local areas within which the stations sit but the wider London housing market too.”
Looking ahead, further extensions to the network are planned for 2015. From next May routes will run between Liverpool Street and Enfield Town, Cheshunt and Chingford. The Romford to Upminster line is also to join the network.
Morris concludes: “The addition of the new lines to the Overground and tube map will undoubtedly have an
effect on those local housing markets.
“We expect these areas will see sustained high levels of activity, increased investment flowing into the local housing stock and prices growing 3 per cent a year beyond those of the local area.”
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