Why It Matters Distance to Central London
Summary
We have measured how far away on average each postcode is from the Central London Area.
Definition
In line with most definitions of Central London we have generally used the postcode of WC2N 5HS (Charing Cross), as our central point, however opinions are split depending on whether one takes “Central London” to be the centre of the population distribution, the midpoint of all London neighbourhoods or the area that is equidistant to the perimeter. We therefore favour the use of a Central London Region consisting of the area between W1C 1CX (Marble Arch), SE1 7XG (Lambeth North), N1 9AL (Kings Cross) and EC3V 3LA (Bank Station).
Interpretation
| Dataset | Explanation |
|---|---|
| Distance (km) to Charing Cross (WC2N 5HS) | This is the average distance from in kilometres from this postcode. |
| Distance (km) to Marble Arch (W1C 1CX) | This is the average distance from in kilometres from this postcode. |
| Distance (km) to Lambeth North (SE1 7XG) | This is the average distance from in kilometres from this postcode. |
| Distance (km) to Kings Cross (N1 9AL) | This is the average distance from in kilometres from this postcode. |
| Distance (km) to Bank Station (EC3V 3LA) | This is the average distance from in kilometres from this postcode. |
| Distance (km) from the Central London Region (EC3V 3LA) | This shows you how far in kilometres this postcode is from the nearest boundary of the Central London Region. |
| Custom Walulel Score for Distance from Central London | This is a score between 1 and 100 that lets you whether this postcode’s distance from Central London is high as compared the London average (because it is a number closer to 100) or low relative to the London average because it is a number closer to O). |
| The quartile (25% band) your postcode falls into comparted to the Average Custom Walulel Score Distance from Central London | This shows which quartile this postcode’s distance from Central London falls into. |
| Notional Distance from Central London | This shows you the average kilometre distance to any given place within the Central London Region. |
| Average Distance from Central London | This is the London-wide average distance to the Central London Region. |
| Diference from the average Distance from Central London | This details in kilometres how far above or below the London London wide average distance to the Central London Region this postcode is. |
Why the metric matters from a commercial inhabitant’s perspective
For commercial inhabitants, the distance from the Central London Region is only a consideration if they are involved in a business sector that can benefit from a greater range of access to human resources, the advantages of being clustered in the central economic zone or by minimising the physical distance to other areas of London. In such business sectors, they are likely to fit into the “Bid-Rent” theory, which states that the money (i.e. “Rent”) a business is willing to pay to secure a business premises increases, the closer that business is located to a more central location.
As businesses make competing offers (i.e. “Bid”) to occupy premises more centrally the intensification of the demand for central space results in higher prices within the Central London Region. The flipside to this is that the same business should be willing to accept a location further from the centre provided the monetary cost is less. Where a business is located is therefore the outcome of its attempt to locate itself as centrally as its budget will allow. There are exceptions to this theory where some business sectors favour being outside of the Central London Region for logistical or other reasons and therefore they would actively seek to maximise their distance from the Central London Region. Either way our data should allow a quick comparison of the “Rent” others have bid to be similarly close to the Central London Region.
1911 map of London
Why the metric matters from a residential inhabitant’s perspective
A monocentric view of London provides that the cost of living and land values tend to be higher the closer towards the Central London Region one gets. As compensation for higher commuting costs and less access to the mix of services concentrated in Central London, the of living and land values in more distant or suburban areas is lower. Residential inhabitants usually seek to get the highest level of Amenity Value possible, within their budget and for a commuting time acceptable to them.
This is normally correct but for the existence of push and pull factors which are unique to every resident. “Push” factors are those that drive residents away from Central London, such as traffic, proximity to family, stage of life, space requirements and employment etc. “Pull” factors are those that attract people to Central London such as proximity to work, potentially lower transport costs, and entertainment. Where there is not an overriding push or pull factor and Amenity Values and commuting times are comparable, our data suggest that residents are unlikely to opt to live in an area that is located further from the Central London Region, where a closer alternative is possible.
General commentary
The resurgence of the market for city centre living within the Central London Region has been strong since the 1980s. This has been best captured by the process of gentrification within the Central London Region which has now extended over many decades. The increase in demand for space in the Central London Region can largely be attributed to 4 ingredients.
Firstly, a supply of land has emerged in Central London for which more profitable uses do not exist, leaving housing as the most appropriate use.
Secondly, there has been an increase in demand for smaller Central London accommodation from distinct sections of society stemming from recent changes in household structure and marriage lengths.
Thirdly, a significant rise in the demand for centrally located student accommodation has arisen, associated with the expansion of higher education institutions in London. Fourthly, changes in public policy have led to the promotion of Central London housing development.