Could Cycle Superhighways boost house prices?

Could the sudden surge in the number of people cycling have a knock on impact on house prices? That is the question posed by a new analysis from a London estate agent that highlights how property valuations tend to be considerably higher along the capital's Cycle Superhighways.

Benham and Reeves analysed the average house price in areas straddling each of London's Cycle Superhighways and how they compare to London as a whole, as well as the wider boroughs bordering the cycle links in and out of the city. 

The research shows that on average, house prices along all seven Cycle Superhighways stand at £874,578, 80 per cent higher than the current average London house price of £485,794. The cost of living along a London Cycle Superhighway also largely exceeds the wider average cost of buying in the boroughs these routes pass through.

The analysis obviously raises questions over whether the apparent correlation indicates any causation, given many of the Cycle Superhighways pass through central London and connect well-heeled neighbourhoods where average property prices are significantly higher than average foe a wide-range of reasons.

However, director of Benham and Reeves, Marc von Grundherr, said that the surge in cycling's popularity since the coronavirus crisis struck is likely to impact property valuations in the future.

"Traditionally, the sought after feature of a nearby tube station would have allowed sellers to command a higher price than other similar properties in the area, but while travel remains restricted and apprehensions around public transport are high, this will no longer be the case," he said. "With government advice to avoid public transport where necessary, we've already seen a 17 per cent uplift in the number of people enquiring on homes close to Cycle Superhighway and as these transport routes soar in popularity, property values will continue to follow suit."

He also suggested the premium commanded by properties near Cycle Superhighways could extend into neighbouring areas. "Much like the spillover effect we've seen in more affordable boroughs surrounding popular locations, as well as the London commuter zone, the wider areas along these routes should also see an uplift in market health as people look for a more affordable option close to a Cycle Superhighway," he predicted.

Earlier this month Halfords reported sales of bicycles had more than doubled since the start of the lockdown, while the government recently announced a £2bn funding blitz to promote active transport alongside reforms designed to make it easier for local authorities to pedestrianise streets and deploy cycle lanes.

In related news, Swedish e-scooter company Voi this week announced plans to deploy its first scooters on the streets of the capital from next month.

With the government widely expected to legalise e-scooters on the UK's roads and cycle lanes this summer, Voi said it was talking to Transport for London and London boroughs, as well as Manchester, Salford, Bath, Teeside, Darlington, Hartlepool, Milton Keynes, Birmingham and Edinburgh about deploying its scooters.

The company also announced it has hired Richard Corbett to head up its UK, Ireland, and Benelux operations. Corbett worked for US scooter operator Bird for almost two years, where he launched e-scooters on private land at Queen Elizabeth Park in East London, and has been heavily involved in efforts to convince the government to reform rules that have to date restricted the roll out of e-scooter services. 

"Out of this terrible pandemic, there is an opportunity to reinvent the way that we travel around cities so that we can cut congestion and pollution for good," said Fredrik Hjelm, CEO and co-founder of Voi Technology. "Now more than ever a collaborative approach to mobility is needed and we need to make sure that there are good non-polluting options available that suit all abilities and pockets. There is a huge unmet demand for e-scooters in UK towns and cities and Voi will work closely with local authorities and other transport operators to provide new mobility choices."