Save half a million on house prices by commuting an hour into London
Homeowners living 60 minutes outside Central London pay nearly £500,000 (60%) less for the average property, according to Lloyd’s Bank.
House prices in towns around an hour’s train journey away from the Capital, such as Basingstoke, Crawley, Gravesend, Windsor and Northampton, are on average around £325,091. This is a whopping £483,342 lower than the average of £808,434 for a property within travelcard zones 1 and 2. This is also significantly lower (£202,424 or 38%) than the average property price in zones 3 to 6.
A 40-minute commute will still save homebuyers £375,114 (46%). Homebuyers looking to buy a home in towns approximately 40 minutes away, such as Billericay, Hatfield, Staines and Woking, will pay an average price of £433,320 – which is still £375,114 (46%) lower than in zones 1 and 2 – and with a lower average annual rail pass costing £3,775.
Even at up to 20 minutes distance away from the heart of the capital, commuters from towns such as New Cross and East Croydon benefit from an average house price £295,075 lower than in Central London. This is enough to pay the current annual rail cost of £2,551 for 116 years.
Top price commuter towns
Not all commuter towns can save you money though. Residents of Beaconsfield pay an eye-watering average of £1,025,699 compared to the average price house price of £808,434 in Central London, a difference of £217,265. Gerrards Cross (£917,585), Harpenden (£813,298) and Wimbledon (£814,420) also top the Central London average.
Andrew Mason, mortgages director at Lloyds Bank, said: “Buying a home in Central London is out of reach for many where house prices are around 16 times the average UK wage. In almost all towns in this survey, housing affordability is significantly greater with a London salary compared to what can be earned locally and for commuters with up to an hour’s journey, the reward is an annual salary that is, on average, £8,600 (18% ), higher than what they could earn in their local neighbourhood which is around £40,000.”