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Home Press releasesProperty marketLTNs boost London property prices but at the detriment of those nearby

LTNs boost London property prices but at the detriment of those nearby

The latest research by London lettings and estate agent, Benham and Reeves, has revealed that while London’s Low Traffic Neighbourhoods (LTNs) may be bringing a boost to house prices for homeowners who live within them, the additional strain they place on surrounding roads with respect to increased traffic congestion is a deterrent to many homebuyers.

Benham and Reeves analysed current market data, looking at the average house price for homes found within the boundaries of 20 LTN’s across London, before comparing these property prices to the average house price of the wider borough in which they are located.

What are LTNs?

LTNs are residential areas where traffic flow is restricted through either one-way systems, road closures or other traffic calming measures to encourage greener living through walking, cycling or public transport. The idea is to stop road traffic utilising these neighbourhoods as shortcuts to avoid congestion, thus reducing congestion to certain routes, creating safer streets and enhancing air quality.

Homes in LTNs command house price premiums as high as 108%

The results show that, on average, house prices within the 20 LTNs analysed by Benham and Reeves come in at £614,863 in the current market. This is some 9% higher than the current average London house price of £502,690.

LTNs in both the North and West of London command the highest house price premium on average at 14%, falling to 7% in South London and just 1% in the East.

The West London LTN of South Chiswick commands the highest premium of all LTNs analysed by Benham and Reeves, with the average house price within its boundary coming in 108% higher than the wider borough average of Hounslow.

Within the LTN of Fox Lane in North London, the average house price sits some 42% above the wider average for the borough of Enfield, while Arsenal and Highbury Fields (26%), Colliers Wood (18%) and Wanstead Park (18%) are also home to some of the highest LTN house price premiums in the capital.

However, while living within an LTN clearly has a positive impact on property prices, those within the surrounding area are unlikely to share the same enthusiasm, as increased congestion proves problematic when it comes to enticing potential buyers, as Marc von Grundherr or Benham and Reeves explains.

Director of Benham and Reeves, Marc von Grundherr, commented:

“It’s clear that the implementation of LTNs has had a positive impact on local property prices with many of them commanding a very healthy house price premium versus the wider boroughs in which they are found.

Less traffic congestion, safer roads and cleaner air are all strong selling points for potential buyers, particularly in the capital where they are arguably some of the most pressing issues faced by Londoners.

However, LTNs aren’t without their drawbacks. Not only have they been criticised for hindering access for emergency services, but it’s clear that they have a negative impact on the areas surrounding them, bringing an increased level of traffic congestion to the detriment of those residents not lucky enough to live within a nearby LTN.

This arguably eradicates the intended benefit, as while it reduces traffic and the chance of accidents while improving air quality in one area, it actually worsens it in another.

For those sellers living outside of an LTN boundary, it’s simply another obstacle faced when they come to sell, as potential buyers are put off by the far higher weight of traffic.”

Table shows the average house price in each LTN area versus the wider borough average in which it is located
London region LTN area Average LTN price – latest Borough Average wider borough price – latest Difference £ – LTN vs borough Difference % – LTN vs borough
North Fox Lane £607,227 Enfield £427,468 £179,759 42%
North Arsenal and Highbury Fields £759,826 Haringey/Islington £600,852 £158,974 26%
North South of Alexandra Palace £639,753 Haringey £556,570 £83,183 15%
North London Fields £610,381 Hackney £589,517 £20,864 4%
North Kentish Town £667,528 Camden £714,736 -£47,208 -7%
North London LTN Average £654,681 North London Borough Average £570,120 £84,560 15%
East Wanstead Park £469,290 Newham £396,662 £72,628 18%
East Lee Green £470,453 Lewisham £418,927 £51,526 12%
East Upney £345,805 Barking and Dagenham £328,226 £17,579 5%
East Poplar £474,767 Tower Hamlets £453,598 £21,169 5%
East Thamesmead West £323,265 Greenwich £458,920 -£135,655 -30%
East London LTN Average £410,928 East London Borough Average £408,346 £2,582 1%
South Colliers Wood £636,972 Merton £538,411 £98,561 18%
South Ferndale £553,272 Lambeth £501,094 £52,178 10%
South River Wandle £441,599 Sutton £424,968 £16,631 4%
South Walworth West £494,315 Southwark £495,431 -£1,116 0%
South South Norwood £381,128 Croydon £394,025 -£12,897 -3%
South London LTN Average £493,665 South London Borough Average £467,713 £25,952 6%
West South Chiswick £924,930 Hounslow £445,246 £479,684 108%
West Brent Valley Park East £562,070 Ealing £533,943 £28,127 5%
West Hayes £429,043 Hillingdon £449,725 -£20,682 -5%
West East Twickenham £684,289 Richmond £736,499 -£52,210 -7%
West Monks Park and Oakington £473,981 Brent £521,609 -£47,628 -9%
West London LTN Average £591,398 West London Borough Average £528,095 £63,304 12%
Overall London LTN Average £529,391 Overall London Average house price £502,690 £39,701 5%

– *LTN house price data based on postcodes that fall within 20 London LTNs (five per region) and sourced from Property Data.
– LTNs chosen based on a geographical spread using the largest LTNs where possible and also avoiding LTNs found within the same borough to give a wider market view of house price impact.
– Wider borough house price data sourced from the Gov – UK House Price Index. In the case of Arsenal and Highbury Fields which lies within both Haringey and Islington, an average of both wider borough house prices was used.


About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 15 international offices.