London First estimates it could be worth £77 million each year to the capital's economy by 2029. Much of this will be in boosts to the night-time economy.

Before the launch of the 24-hour tube, around half a million people used the underground after 10pm on Fridays and Saturdays. It’s thought that this figure will rise by around 40% once all five Night Tube lines are running.

Employees not customers

Mark Wild, managing director of the London Underground (LU), launched a similar service in Melbourne earlier this year and predicts the effects on the night-time economy will be similar.

While many people will be using the Night Tube to stay out partying later, Wild claims it will be of most benefit to those working in industries like hospitality and healthcare, along with other night workers. A 2008 Bus Survey Analytical report found that 49% of all those using the bus at night were travelling to or from work, or on employer’s business.

London Chamber of Commerce and Industry chief executive, Colin Stanbridge, says the new service is vital to underpinning London's 24-hour economy.

Kevin Dunning, director of asset and operational support at LU, expects the Night Tube to create 500 jobs through direct operation of the service, and a further 1,700 in the night-time economy.

While many bars and even restaurants could extend their opening hours to take advantage of the new service, it will be the staff at these places - and even those that don’t stay open later - that will benefit. Many of these staff don’t live in the centre but in more-affordable places further out, making night bus journeys very long and taxis too expensive.

Housing impact

One big effect on the Night Tube will be felt at the end of the lines. These areas would previously have only been accessible by night buses or the last tube at the weekend. But with the launch of the 24-hour tube, people in Zones 3 to 6 will be able to work and play in the centre all night.

Dominic Price, a partner at Strutt & Parker, said: “The stops towards the end of the Night Tube lines will be of particular appeal to first-time buyers and the younger demographic, who enjoy London’s nightlife and will like not having to spend a fortune on taxis late at night.”

Figures from the Land Registry show that prices around Night Tube stations are already considerably higher than other areas within the local authority. For example, a home within 10 minutes of Ealing Broadway tube costs on average £536,134, compared to £406,999 for other homes in Ealing.

This could lead to a levelling of house prices. As the commutable area of London expands there should be a shift, with demand in the centre dropping slightly, causing a levelling-off in prices, while demand picks up further out, leading to a price rise.

House-builders will want to capitalise on this new demand, adds Price. They will look to target areas like Brixton, Walthamstow, Ealing Broadway, Loughton and Hainault. This could see areas around these station redeveloped, new flats built and property investors targeting run-down homes.

Sites with development potential in Zones 3 to 6 have seen a marked increase in interest from developers in recent years, as their focus moves out of the more exclusive and saturated Zone 1 and 2 markets, in order to build stock that is more affordable and often easier to sell.

Less buses, more bars

What it could mean is fewer buses on the roads at night. Since 2000, night bus usage has increased by 170%.

There could also be an increase in the number of bars, and maybe a turnaround in the decline in clubs. Late-night licenses are available in the UK, but many bar owners say they are hard to get.

One reason applications often get rejected is that bars can’t demonstrate that people will disperse quickly and quietly when the premises close, so as not to have an adverse impact on neighbouring businesses and residents.

This is usually because people have nowhere to go, are waiting for taxis or are hanging around bus stops waiting for night buses. The Night Tube means people should move quickly to the underground and out of sight.

Foreign investment

Foreign Direct Investment (FDI) is of huge importance to London’s economy. Much of this is based not just on the City’s financial markets, but also on the attractiveness of London as an international city.

Strengthening that position is of great importance if London is to continue to thrive, claims a TFL report on the Night Tube. The report claims that the 24-hour tube can play a role in supporting foreign investment in London and giving confidence that the city is a great place to invest in.

As for London’s jet-setting business people, the Night Tube will also help those travelling to and from Heathrow airport in the early hours of the morning and at weekends.