Making the decision to move to London is very exciting — but of course, moving anywhere doesn’t come without certain anxieties and stress. When relocating to London for the first time, there are lots of things to consider, especially when it comes to finding a property to rent in London. What’s more, with the recent vote to leave the European Union, the property market is one of many areas still sweating on the financial implications of Brexit.
A key factor to consider when moving to London is the recent introduction of the night tube service, making the London Underground service available 24 hours a day in some districts. The Victoria, Central, and Jubilee line are now fully-functional all day and night on Fridays and Saturdays, with the Piccadilly and Northern Line to follow before the end of the year.
Many Londoners are rejoicing at the thought of not having to take a night bus or endure expensive taxi journeys on the weekend. TFL firmly believes that the night tube will help the economy in London. But while everybody seems happy about the changes, what does this mean for the London property market?
Has Property in London Increased in Price?
When the Crossrail plans were announced in London, there was a dramatic increase in property prices along where the line would be built. The introduction of the night tube hasn’t seen such a dramatic increase, but there has been a gradual increase in property prices along the tube lines in the past two years. While the average increase in property prices in London rose by 7%, some properties between Zone 3 and Zone 6 rose by up to 20%. These increases were partly due to the announcement of the night tube.
However, the time when rent and buying costs will soar on property along the tube lines is when lines are introduced as a 24-hour, 7-day service. This will allow late-night Londoners to get home much easier — from those working night shifts, to those heading back after a big night out. A 24/7 tube would put a lot of pressure on house prices and the increase would be inevitable. At the moment, however, there have been no such discussions about introducing any 24/7 tube lines. This is a space to be watched carefully as the availability of night tube services expands.
Who Will Lose Out in the Property Market?
Those looking to buy property in London may feel the negative effect of the night tube. Zones 5 and 6 often feature cheaper property, while still being accessible to central London, but it’s these properties which have gradually been increasing in price as the night tube service comes into effect. Therefore, the amount needed for a house deposit has been creeping up and those looking to buy will have to save for longer. If you are wanting to buy property in London, be sure to look into the Government's help-to-buy schemes.
Those looking to rent will notice the differences in price between property along the night tube line and property further away. Naturally, the options which are less accessible to a tube line will boast the cheapest accommodation prices.
TFL’s argument that the night tube will boost London’s economy certainly seems to be true. While TFL was referring to bars and restaurants picking up increased revenue, the demand for property along night tube lines means that house builders will likely be in even higher demand. Building new properties along the night tube line will be a popular choice for developers, while those looking to sell their home in the area will require the skills of a decorator to get the maximum buying price.
I’m Moving to London. What Should I Do?
If you’re moving to London from abroad, finding somewhere to rent first should be your first port of call, rather than looking for somewhere to buy. With the introduction of the 24-hour tube, you may encounter higher prices along the tube lines. You’ll need to weigh up how much you’ll benefit from late night weekend tubes in relation to rent prices and income. Property away from tube lines can be much cheaper, while still offering easy access into key areas of London via bus and train.
Keep an eye on property prices as Brexit evolves and decisions are made, at such an uncertain period for the UK’s economy means predictions cannot be relied upon. Try and have somewhere in mind which you’d like to move to, whether it’s on a night tube line or not. Good luck with the move!
Author Bio: Offering property in a variety of locations all over London, Anthony Sargent is the managing director of East Dulwich estate agents Fish Need Water. Anthony aims to make finding property in London easy for all, being honest and fair about prices.