Mark Wadsworth

This is a spare 'blog in case my main 'blog at markwadsworth.blogspot.com isn't working

More Ricardo Fun

From an old Evening Standard I found again while tidying up my study.Yet another example from real life how the actions of “the community” create land values – something which the estate agents refer to as “Location, location, location”.

London (or any other town, for that matter) has to be there first, and London is only the sum total of people who live and work there, and all the amenities or opportunities they provide. The total number of people who can live and work somewhere in turn depends on how good transport infrastructure is (roads and cars are fine for smaller towns; but above a certain population density, only public transport will do).

Very few people are happy to commute more than ninety minutes each way, so if a house is more than ninety minutes away, it’s “time from London” value is £nil; sixty minutes away (i.e. thirty minutes closer) and £39,000 of its potential selling price is TfL value; half an hour away and it’s £78,000 and the very fact that a house (or flat) is in London itself is worth £117,000.

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