You are here: Home - Mortgages - First Time Buyer - News -

Big house price savings if you’re prepared to commute

0
Written by: Christina Hoghton
30/10/2017
London commuters can save hundreds of thousands of pounds on property prices if they accept an hour's journey to and from work.

A 60-minute commute to a job in the capital can save you an eye-watering £480,000 on the price of your property, according to Lloyds Bank. That’s a 60% saving on central London house prices.

Average prices in towns such as Crawley, Windsor, Rochester, Peterborough and Oxford, which are about an hour’s train journey away from the capital, are £316,000. This compares to £797,158 for a home in zones one and two.

The huge difference in price would more than cover the annual rail cost of £5,169- in fact it would pay it for 93 years.

Cost of living closer

Even a 40-minute commute could save homebuyers £372,255 (47%), with average prices of £424,903 in Hatfield, Billericay, Orpington and Reading.

And for the sake of of a short 20-minute commute you could still save £299,328 (38%), buying in towns such as Ilford and Elstree.

Andrew Mason, mortgage product director at Lloyds Bank, said: “Considering how far away any potential new home is to your work is often a key factor when buying a new home. While it’s not surprising that homes outside of central London are typically cheaper, the difference is significant.

“Commuting to London is a smart move for those wishing to benefit from the higher wages on offer while buying a cheaper and typically larger home.”

Cheaper city living

Commuters to some of the UK’s major cities face the opposite, with some paying more for property in nearby towns than if they lived in the city.

The average house price in Birmingham is around £181,758, but several towns around 40 minutes away (rail) – Derby, Coventry, Burton on Trent and Leamington Spa – command higher average house prices of £225,353. Commuters from these towns also have to pay £2,261, on average, for a current annual rail pass.

The same applies to a number of towns that are 40 minutes away from Manchester, such as Warrington, Chorley, and Macclesfield, which all have a higher house price (£216,236) than in Britain’s third largest city (£174,972).

North of the border

Rail commuters to Scotland’s two biggest cities are typically financially better off catching the train into the city, according to Bank of Scotland.

House prices in locations just 30 minutes rail travel time from Edinburgh – such as Dunbar, Falkirk and Livingston – are, on average, 36% lower than in the centre of the city. The average house price of £243,200 in Edinburgh is £86,371 higher than a number of commuter towns (£156,829 on average) just 30 minutes away on the train.

House prices for homeowners living 30 minutes outside of Glasgow are 13% lower (£22,000) on average.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Stock of the week: Hill & Smith

Ian Forrest, investment research analyst at The Share Centre, picks Hill & Smith as stock of the week.

Close