The launch of the 24-hour tube service last month is pushing up prices of homes close to stations on the all-night lines, a London estate agent has revealed.
From 19 August, the tube started running past midnight on the Central and Victoria lines, making it possible for Londoners to avoid long journeys on night buses and expensive cab fares. The 24-hour service will soon be introduced on the Piccadilly, Jubilee and Northern lines.
Portico forecast that house prices will increase as a result of the Night Tube, particularly in areas at the end of the lines, such as Cockfosters, High Barnet and Walthamstow, which could see the biggest hike in home values.
The estate agency also expect to see rental values rise in areas benefitting from the new Night Tube, with the company pointing out that the highest rental yields on the network are already concentrated in the outer zones.
Hounslow West, close to Heathrow in Zone 4, has the highest existing rental yield on the Night Tube network at 5.3%, while fellow Zone 4 location Hainault comes in at a close second with 5.2%.
Stratford in Zone 3 has a rental yield of 5%, while Tottenham Hale and Stanmore – also both in Zone 3 – generate an average yield for buy-to-let landlords of 4.8%.
Mark Lawrinson, regional director at Portico, said: “The Night Tube will appeal to young professionals who work and party in central London but can’t afford to buy in Zone 1 or 2. The new 24-hour service will mean they can push further out to more affordable areas, while still maintaining the lifestyle they want, and without spending a fortune on taxis!”