The long-awaited Night Tube finally launched in mid-August, after delays, strike action and controversy had pushed back its grand opening by nearly a year.
Services are currently running for 24 hours on the Central and Victoria lines on Fridays and Saturdays, with the Jubilee Line set to follow suit from October 7 and the Northern and Piccadilly lines at some point later in the autumn.
It's expected to give a boost to London’s economy, tourism and jobs market, as well as those looking to party late into the night in the capital without having to worry about how they are going to get home afterwards. The days of revellers relying on an unreliable night bus or an expensive taxi to ferry them home may soon be a thing of the past.
The Night Tube's also expected to have a significant impact on the capital’s property market, increasing house prices and rents in locations outside of Zone 1 and 2. End-of-the line London, those places on the far reaches of the world’s most famous underground system (i.e. Zones 4, 5 and 6), is expected to benefit most.
As you’d expect, the Night Tube makes the prospect of living in the outer reaches of London that much more appealing, which’ll be music to the ears of landlords who have rental properties in places such as Tottenham Hale, Walthamstow Central, West Acton, Ealing Broadway, Fairlop, Woodford, Morden, High Barnet and Hainault.
According to research carried out by the Association of Residential Letting Agents (ARLA), a quarter of its members in London and the South East anticipate rent rises around the tube stations which are connected to the 24-hour service.
London's also home to a huge population of students and young professionals, many of whom are eager to sample the capital’s bars, pubs, clubs and restaurants that open well into the night.
With rents very high in the centre of London, money-conscious tenants may look to move further out to reduce their costs. Knowing that they’ll still be able to experience the capital’s famous night-life over the weekend – without a long, painful or costly commute home – could encourage renters to consider areas they might not have considered before.
A number of areas are expected to benefit positively from the arrival of the Night Tube – with increased demand and higher rents – and therefore may well be of interest to landlords and investors looking to maximise their rental yields.
Here we take a look at some of the places that will be boosted...
Many will know Cockfosters simply for being the last eastbound stop on the Piccadilly Line, with most considering it too far out in the sticks and too out of reach. The North London suburb, however, is only 36 minutes from the West End – Leicester Square, Covent Garden, Piccadilly Circus, et al – which is always very popular on Friday and Saturday nights.
This is likely to give the area significant appeal to young professionals and families, drawn by the many new build properties on offer and the ample nearby green space.
Capital gains here have been strong in recent years thanks to its affordability and excellent transport links; the Night Tube, however, will give it exposure to a whole new pool of potential tenants, ones who might previously have considered Cockfosters as a far off outpost.
The whole of the Victoria Line will be running a 24-hour service on Fridays and Saturdays, which means Tottenham Hale will be one of the stations to benefit.
An area that has received significant regeneration in recent years – and is set to receive more, with the arrival of Crossrail in 2017 – Tottenham Hale has become one of those trendy, up-and-coming locations that appeals to young professionals in particular.
Access to King’s Cross St Pancras, Euston, central London and Brixton is easy – Oxford Circus, such a hub of activity on the weekend, is only 15 minutes away – while students at the capital’s many universities may see Tottenham Hale as an easy link to their campus and London’s weekend night-life.With the improved infrastructure in place, ongoing regeneration projects and rising demand, rent increases seem inevitable. Landlords looking to invest would be wise to consider this slice of north London.
On Friday nights many of those working in the City will go out for a few drinks, with the potential for this to turn into a few more drinks as they party into the early hours. They then want to get home with relative ease.
Bank, St Paul’s, Liverpool Street and Chancery Lane are all stations City workers will be close to, and these Central Line stations are all around 20-25 minutes from South Woodford station. Holborn, often seen as the link between the City and the West End, is just 27 minutes away from the north-east London suburb.
Property here's fairly cheap, so investors and landlords can feel more confident in achieving better rental yields. The Night Tube's likely to increase demand for a part of London that might have been considered too far out before, with increased demand also leading to higher average rents.
An affluent part of North West London, Stanmore will be one of the stations to benefit from the Night Tube when the Jubilee Line embraces it in early October.
Families are likely to be drawn by the quieter, village like feel, while young professionals will appreciate the fast transport links, the nearby green space and the busy high street.
It also offers some of the highest rental yields in the outer edges of London, only bettered by Tottenham Hale, Stratford, Hainault and Hounslow West.
A long-standing positive effect
As we can see, the Night Tube's expected to have a significant impact on rents in areas on the outer reaches of London, with increased demand from young professionals and young families. This increased demand could, in turn, benefit landlords letting property in these areas.
As has been the case with Crossrail, a major transport project can have a positive impact on rents and house prices. Thanks to Transport for London's latest initiative, many locations look set to benefit. And canny landlords can also take advantage of 'the Night Tube effect'.