Traditionally, proximity to a busy London Tube station has been a major factor in determining a property’s market value. The closer you are to one of the capital’s main transport hubs, the more likely your home is to attach a premium price, or at least, that is how things used to be before the Coronavirus pandemic.
Data provided by UK mortgage broker UK Property Finance, across much of London, demand for properties in the majority of zones has completely changed compared to the same time last year. New figures released from Rightmove suggest that once-premium postcodes in close proximity to major Tube stations have seen a dip in demand, while those in quieter suburbs further afield have become more desirable.
Ongoing lockdowns combined with the opportunity to work from home have resulted in an extraordinary exodus that does not show signs of abating anytime soon.
The New London Property Tube Line Hotspots
When compared to the same period last year, Rightmove reports a 108% increase in the number of buyers purchasing properties in zone six. Meanwhile, the number of home buyers in zone five increased by approximately 103% compared to September 2019.
To put these figures into some kind of context, annual growth from September 2018 to September 2019 stood at just 9% and 8% respectively. Both zones therefore recorded growth in home buying activity of approximately 100% over the past year.
At the opposite side of the scale, interest in properties in zone one appears to be heading in the other direction. Between September 2018 and September 2019, growth in home buying activity was recorded at 41%. From September 2019 to September this year, zone one recorded an increase of just 7%.
Rightmove reported that the highest increase in demand was recorded in and around High Barnet, achieving extraordinary growth of 166% since the same time last year. The second most popular place among homebuyers was Finchley Central, which recorded 120% growth in demand over the past 12 months.
Property Prices Down in Zone One
Dwindling demand for central properties has also had an impact on average house prices. In fact, Rightmove’s figures suggest that zone one is the only zone to have recorded a decrease in the average house prices during the past year, a full 8.2% down since October 2019.
“Agents have been reporting a number of people selling up in the inner London zones and moving further out, but to see this reversal in the demand trend reflected so clearly in the data is quite something,” commented Tim Bannister, Rightmove’s head of property data.
“Some buyers still expecting to commute into the centre in the long term may have now adjusted their mindset about how many zones they’re prepared to move out, leading to zone 6 being the new favourite,”
“This data demonstrates the short term trend of more central places like Moorgate and Bank seeing lower demand right now, although it’s worth noting that it’s off strong demand levels for these locations a year ago. I do think this demand will come back eventually but it’s not clear yet how long it will take.” – ukpropertyfinance.co.uk
(Syndicated press content is neither written, edited or endorsed by ED Times)
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