Londoners are happy to pay extra for a home just inside the congestion charge zone, new research has revealed.
According to research from the London School of Economics (LSE), homes inside the zone are £30,000 more expensive than the houses on the other side of the congestion charge boundary.
LSE researcher Cheng Keat Tang looked at over 500,000 home sales within five kilometres of the congestion charge boundary, and compared house prices from just inside and just outside the zone.
Tang said: "The rationale for the congestion charge is not only to mitigate traffic bottlenecks and improve traffic flow and commuting time, but also to generate revenues to improve the public transport system.
"The introduction of the congestion charge was not well-received by residents. Many were unsure whether the charge would achieve its intended aims."
The congestion charge was first introduced in 2003 and since then traffic congestion has fallen by 20 per cent and delays have been cut by 30 per cent, according to figures from Transport for London.
Residents in the zone do have to pay the congestion charge – which is currently £11.50 per day – but they are eligible for a 90 per cent discount.