Research by game-changing property platform, Boomin, has revealed that the cost of buying along one of the capital’s main cycle routes into the city is as much as £102,204 higher than the wider surrounding area, while some tenants are paying up to £619 more per month in rent.
Pandemic Impact On Travel Preference
During the pandemic, public transport restrictions emptied the capital’s tubes, trains and buses. Instead, half of Londoners (52%) looked to greener alternative methods of travel such as walking or cycling.
When workplace restrictions were lifted, they (53%) continued to avoid tubes and buses in favour of walking or cycling and now that Covid restrictions have lifted entirely, 40% have maintained this travel trend, with 39% only using public transport when commuting to and from work.
This has spurred an increase in demand for homes within reaching distance of a cycle route and Boomin’s research found that 73% of London homebuyers and tenants would prioritise this transport link, with just 27% more inclined to choose a property close to a tube station.
Cycle Route Property Premiums
Previously coined as cycle superhighways, London has six main cycle routes that provide safer passage for cyclists heading into the city from each corner of the capital. In total, these arterial routes for two-wheeled commuters pass through no less than 14 London boroughs and a total of 43 different postcodes.
Boomin analysed both the average house price and the average rent across all 43 postcodes to find the current cost of living within arm’s reach of a major London cycle route. Boomin then compared this to the wider average house price and rent for the boroughs that these routes pass through, to see just how much more it costs to live close to a major cycle route.
Buying
The research shows that, on average, buying a home along one of London’s main cycle routes will set you back just shy of £700,000. The wider cost of buying within the areas these routes pass through is £653,516, making a cycle route accessible property purchase 7%, or £46,249, more expensive on average.
Those buying along the route from Wandsworth to Westminster face the highest property price premium, with homes along this cycle route selling for £886,846 on average – £102,204 (13%) more than the wider average found in the areas it passes through.
A property along the routes of Kentish Town to Elephant and Castle (£70,627), Merton to the City (£70,627), Tower Hill to Lancaster Gate (£64,504) and Stratford to Aldgate (£26,337) also carry a sizeable house price premium on average.
However, there is one route that offers relative affordability for those keen to get on their bike. Buying along the cycle route between Tottenham and the City will set you back £643,439 on average, almost £50,000 less than the wider cost of buying along the four areas it passes through (£691,504).
Renting
Unfortunately, those looking to rent within arm’s reach of a major cycle route into the city are facing a rental price premium regardless of which route they opt for. On average, the cost of renting close to a cycle superhighway into the city sits at £2,157 per month, £353 (20%) higher than the current London average of £1,804 per month.
The route between Kentish Town and Elephant and Castle is home to the highest rental price premium, with the average rent across postcosts on the route sitting at £2,413 per month – £619 (35%) higher per month.
The route between Tower Hill and Lancaster Gate is home to the next highest rental price premium at £465 per month, followed by Wandsworth to Westminster (£379), Stratford to Aldgate (£246), Merton to the City (£228) and finally Tottenham to the City (£227).
Michael Bruce, CEO and Founder of Boomin, says:
“Cycling is perhaps the best way to traverse the capital, particularly for those heading to and from work, as it not only allows them to avoid the dreaded tube, but it’s great exercise and it can save you a considerable amount on public transport costs.
Of course, the downside is that London’s roads can be perilous, as we are unfortunately all too aware of, so utilising one of the capital’s major cycle routes is a great way to minimise the dangers of commuting by bike.
However, renting or buying close to one of these major routes will come at a greater cost, but while this may eradicate the money saved on a travel card, you can still reap the other rewards that a more active lifestyle will bring.”
