Research highlights massive price gaps
New research by mortgage adviser Alexander Hall has revealed significant differences in monthly mortgage costs across the London Underground network, showcasing how property affordability varies widely between stations.
The study analysed average house prices around each station, including the Elizabeth Line and Docklands Light Railway (DLR), and calculated monthly repayments for a two-year fixed rate mortgage with a 15% deposit, an 85% loan-to-value ratio, and an interest rate of 4.77%.
According to the findings, High Street Kensington has the highest average monthly mortgage cost at £9,890. Meanwhile, Heathrow is the most affordable, with an average monthly payment of £1,316 — representing a difference of £8,574.
The Waterloo and City line emerged as the most expensive line overall, with an average monthly mortgage payment of £5,632. The Circle line followed at £5,323, while the Victoria line ranked third at £4,027. Other high-cost lines included the Northern (£3,894) and District (£3,891) lines.
By contrast, the DLR and the Elizabeth Line offered the most affordable averages, with monthly mortgage costs of £2,610 and £2,620, respectively.
The research also examined the disparity between the most and least affordable stations on each line. The District line had the largest gap, with monthly costs ranging from £9,890 at High Street Kensington to £1,642 at Upney — a difference of £8,248.
The Piccadilly line and the Elizabeth line tied for the second-largest gaps. Properties near Piccadilly Circus and Tottenham Court Road (£8,496 per month) were £7,181 more expensive than those near Heathrow (£1,316).
On the Hammersmith and City line, buyers could save £6,854 by purchasing near Barking instead of Great Portland Street.
Stephanie Daley (pictured), director of partnerships at Alexander Hall, highlighted the importance of the research for London homebuyers navigating the capital’s high property prices.
“London property values have been holding steady over the past year, and we know the capital remains home to the strongest housing market with respect to the price commanded for bricks and mortar,” Daley said.
“This is particularly evident when looking at the average monthly mortgage payment required, with this cost hitting almost £10,000 across the most prestigious pockets of the London property market.”
Daley also emphasised the role of London’s transport network in helping buyers find more affordable options.
“As our research shows, you can dramatically reduce the cost of your mortgage by looking further along the tube line that runs through your ideal destination. While you may not want to adjust your expectations from High Street Kensington to Barking, you may find that even a stop or two can help to cut the cost required to climb the London ladder.”
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