The extension of London’s Tube service into a 24-hour non-stop service promises to fuel the capital's reputation as a centre of commerce and culture even further. It will also make it easier for people who live further out from the city to take part in the always-on cultural bonanza.
As we’ve seen with Crossrail and Crossrail 2, access to transport links has a significant effect on local property prices. Properties within arm’s reach of a Tube stop are highly sought-after, and as services on the Central and Victoria lines are set to operate around the clock on Friday and Saturday nights, they will become even more valuable. As more areas become connected to the London nightlife, it becomes more viable to live further out from the city centre while not missing out on any of the action.
Sellmyhome and Dataloft are two reliable real estate forecasters that agree the Night Tube will have a significant positive effect on surrounding property prices. Similar to the opening of Crossrail, they predict that prices could increase by between five and ten percent, depending on the precise location of the property and its proximity to the Tube. Properties which are near the ends of the line will see the largest increase in value, as they are receiving the greatest benefit; boroughs like Cockfosters have been largely cut off from central London’s nightlife, and this new access will greatly improve their selling potential. It’s worth noting that the 5-10% predicted price increase is in addition to the overall level of real estate appreciation across those areas, and so represents a significant increase in property values.
What does this mean for sellers?
The extension of Tube times to an all-night programme is more or less unalloyed good news for property owners; property prices will almost certainly rise well above the local average, without any additional infrastructure or noisy traffic. The only appreciable difference will be an increase in foot traffic to and from the Tube on Friday and Saturday nights, which could potentially result in increased noise for those who live in close proximity to a station. However, the benefits are likely to outweigh the negatives.
How will this affect buyers?
The implications for buyers are somewhat more nuanced. On one hand, it means that young people are able to experience the excitement of living near one of the world’s biggest and brightest cities without being cut off from its nightlife. The ability to purchase a home in a cheaper suburb and still hop on a 24-hour Tube train into the centre of the city is very attractive, and makes living in London’s outer boroughs much more appealing.
However, the Night Tube may also have the effect of increasing property prices in the areas which were previously the most affordable; with analysts predicting such significant increases in prices, young people and first-time buyers could find themselves squeezed further out from the city as once-affordable boroughs become ever more expensive.
How will this affect landlords?
Private buy to let landlords might well find that the Night Tube works to their advantage; demand for properties looks set to increase, as young professionals decide that renting a home in Zone 4 offers all the benefits of central living whilst also allowing them to save for a deposit on their own property. Coupled with rising house prices, this could well mean that a buy to let property near an outer-zone Tube station is a sound investment for years to come.