On average, London houses closest to Circle Line stations are the most expensive, while those nearest the Metropolitan Line are cheapest.
Commenting on the research figures, Robert Gardner, Nationwide's chief economist, said: "We examined how the proximity to a tube or railway station impacted property prices in Greater London after taking account of other property characteristics, such as property type, size and local neighbourhood type.
"Our research illustrates that people are willing to pay a significant premium to be close to a station, and suggests that this premium has increased relative to two years ago when we last explored the issue.
"A property located 500m from a station attracts a 9% price premium (approximately £27,000 on a typical London home) over an otherwise identical property 1,500m from a station.”
This price premium is 2% higher than when the Nationwide conducted similar research in 2010, where the data suggested a 7% premium.
Premiums increase as you move closer towards a station, as you would expect. A property located 1,000m from a station would command a 4.1% premium, whilst at 750m this increases to 6.5% and 9.1% 500m for the station.
Interestingly, only 6% of properties in London are more than 1,500m away from a station, and the vast majority of these are in outer suburban areas, where stations tend to be more spread out serving larger catchments.
Changes to the transport network are also a factor to consider.
"Since the last time we examined this issue, the East London Line extension work has been completed and a London Overground service is now operating between Highbury & Islington and Crystal Palace / West Croydon,” said Gardner.
“This has improved rail access in the borough of Hackney, with new stations at Dalston Junction, Haggerston, Hoxton and Shoreditch.
“This is likely to have had a positive impact on property valuations in these areas - indeed, since the reopening of the East London Line, property prices in Hackney have increased by 11% - the second strongest performance amongst the London boroughs.
"The boroughs best served by the tube and rail network include Westminster, Camden and Tower Hamlets, where over 75% of properties are within 500m of a station.
“These boroughs are also some of the most expensive areas in the capital. Havering and Bexley are amongst the least connected boroughs, with fewer than 20% of properties within 500m of a station. Average house prices tend to be lower in these areas, but this also reflects that they are further away from central London.”
The research shows the Circle line serves the capital's most expensive areas taking in much of central London and also parts of west London. Average house prices are nearly £650,000 in areas where the nearest station is on the Circle line.
Average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that the line stretches towards the outer suburbs, with only a short section in central London.
