* Zone 1 has 63 Tube stations and some remarkable buying opportunities in emerging lower-value districts.* The Northern line has formed a “price wall” with property values to the east via Tottenham Court Road less than half those to the west.* Waterloo, Borough, the Square Mile, Vauxhall, Victoria, Euston and Paddington show up as good value, improving areas.
The average prices of Zone 1 residential property either side of the Northern line
Think of London’s Tube lines as the veins of the capital’s property market and travel Zone 1 becomes its heart. This commercial crux of the capital stretches from Earls Court in the west to Aldgate in the east, from King’s Cross in the north to Elephant & Castle in the south.
Zone 1 has 63 Tube stations and though most people would assume that it contains only highly priced areas, a property journey across the zone reveals some remarkable buying opportunities in emerging lower-value districts. Exclusive research for Homes & Property shows a “price wall” formed by the Northern line, with property values to the east of this spinal route via Tottenham Court Road less than half those to the west.
From £310,000: flats at Trafalgar Place, a new scheme at Elephant & Castle
Commissioned by estate agent Wetherell, Dataloft’s analysis of prices and rentals around Zone 1 is an illuminating guide for buyers, renters and investors. Waterloo, Borough, the Square Mile, Vauxhall, Victoria, Euston and Paddington show up as good value, improving areas.
The average property price along the Northern line in Zone 1 is £613,890 compared with £1.36 million along the Piccadilly line. And there are big value differences between locations on the same Tube line. View houses and flats for sale in Victoria Vauxhall hints at this South Bank district's potential to become an arty Soho-style destinationToday the zone coincides roughly with the Circle line’s orbital route. Former nine-to-five business districts such as Holborn in the City are becoming more residential as office blocks are converted into homes; mainline stations are getting a facelift and the areas around them are coveted addresses; cheaper neighbourhoods on the outer edge of the zone (Whitechapel and Elephant & Castle) are rising in status.
London Bridge: a new development model
The revamped area around London Bridge station is a new development model for London. At the centre of it all is the Shard of Glass, but lower-rise buildings with a blend of offices, shops and mixed-tenure homes are in the pipeline.
“We’ve spent a lot of time studying urbanism in places such as Singapore, Hong Kong and Chicago,” said James Sellar of Sellar Developments, the force behind the Shard. “We are taking the idea of the terraced street and looking at it vertically. There are cafés and restaurants at street level, while higher up are sky lobbies with facilities for residents and office workers. Not everyone will use them, but they’ll become meeting places for the community.”
The city centre was previously seen as a place where singles and couples lived but family homes are part of the new vision. The shorter the journey the more time with your family, or more time in the office, or both.
Separate analysis by property consultant Knight Frank highlights the rising value of 10-minute “walkzones” around central stations. Property prices in these zones, particularly Crossrail hubs, are forecast to increase by 40 per cent on average between this year and 2018.
Nine Elms and Vauxhall: 16,000 new homes
From £757,000: two-bedroom apartments at glass-clad Riverlight, the second scheme to be launched at Nine Elms, Battersea
The Northern line split in Zone 1 property prices mirrors the wider London housing market, with values in the west of the zone higher than those in the east and south. But the “value gap” is narrowing as the less expensive areas become fashionable.
Planners and developers are unlocking city-centre sites, big and small, in response to rising demand. Nine Elms and Vauxhall is the most ambitious, a new neighbourhood in the making, with 16,000 homes, parks and promenades, a Northern line extension plus a new pedestrian bridge connecting Battersea to the posh Pimlico waterfront, all within a mile of the Palace of Westminster and Sloane Square.
Before the high-profile launch of redeveloped Battersea Power Station, values in this emerging riverside district were in the £600- to £900-a-square-foot price bracket. Today, buyers are more likely to pay at least £1,300 a square foot for the best apartments. Yet there is more price growth to come as the area matures, according to Knight Frank. It predicts values rising to £2,250 a square foot by 2016.
Nine Elms: current sales
Despite the huge construction activity, homes are currently for sale at only two Nine Elms developments. Embassy Gardens, a complex of 1,982 homes alongside the new US Embassy, will have a spa, a private club and business centre, plus bars and a restaurant. Prices start at £399,000 for suites and studios. Call 0800 404 9009.
Riverlight is the second development at Nine Elms, with homes in six impressive, glass-clad pavilion buildings. Two-bedroom flats start at £757,000. Call developer St James on 020 7870 9620.
View houses and flats for sale in Nine Elms
Trafalgar Place, the first scheme to replace the demolished Heygate council estate, has been launched, with prices from £310,000. Visit trafalgarplace.co.uk
Follow us on Twitter @HomesProperty and Facebook