House prices in London makes commuting more attractive
London real estate prices are racing away from the remainder of the country at such speed that an hour-long train trip towards workplace helps save employees inside capital about £380,000 on the price of property.
Relocating to one among twenty-one cities within an hour’s travel time of London can reduce the money necessary for buying a house to about £260,000, based on research by Lloyds Banking Group, as opposed to £641,000 in London transport areas 1 and 2. That cost variation over offsets the average £5,000-a-year price of a season ticket.
The most economical commuter city is Wellingborough in Northamptonshire, in which houses sell for about £150,000 – the cost of a studio apartment on Holloway Road in north London or a garage in Knightsbridge. The city is forty five minutes from St Pancras on East Midlands Trains, at a price of £6,548 a year, and holds good road connections for people who wish to get to work by automobile.
Researchers looked at Land Registry home prices to determine the average price of a residence in cities with good train connections to the capital, and then analyzed them with the typical property values in central London.
They discovered that even a 30-minute travel can lead to a huge money saving on the money necessary for purchasing a house. The common price of residential property in 16 cities within the half hour commuter belt – including Reading, Luton and Hatfield – was £283,000, or £358,000 lower than in central London.
When Lloyds last performed the survey in the fall of 2012, the savings from residing 60 minutes away from London were £308,000, but since then London price ranges for homes have expanded quickly. New information from Nationwide building society last week revealed London price ranges have jumped 26% during the past year.
Commuters travelling in from outside London also spend significantly less than Londoners residing in zones 3-6, including locations such as Ealing, Brent Cross, West Ham and Wimbledon. A 30 minutes train trip means an average residence will cost 28% less – some £110,000 – than the £394,000 average in outer London.
Selling up in the capital to profit from a Wellingborough discount residence, however, doesn’t appeal to all. Another agent said the city “does not offer plenty regarding glamour” and that potential buyers who look round often choose to live somewhere else.
Kettering, Peterborough, Luton and Basildon are also in the top five most economical cities within a 70-minute commute to central London. In each of these cities the price of an average residence was less than £174,000.