Recent research has calculated that it costs £3000 more to buy a house each minute you travel closer to London. This is a fairly staggering fact that incentivises commuters to live and travel from further afield.
The research found that an average house price within central London is £606,000, whereas it fell to £458,000 via a 30-minute train ride. These statistics show that there is a solid value proposition for buyers who work in London, looking to save on high living costs by living outside of the city and using public transport to commute.
However, this has generally been common sense for a few years now. No longer is it a brave new idea. This has also lead to a shift in property prices in areas surrounding London. So while house prices drop for each minute you travel away from London on a train, those house prices are also on the rise.
Places like Luton, Hertfordshire and Kent have seen prices rise by 12.2% in just the first 3 months of 2016 alone. Why many people have realised that it is cheaper for them to live away from their job, now all of a sudden property prices are rising to match. So while house prices are still lower than central London, the gap will surely diminish.
Over time could we see the influx of commuters actually level out the prices in places with good transport links to match those of central London? That might be a bit of a stretch, but at the rate things are going at present, it may become not such a cut and dry financial situation. Don’t forget, the cost of train travel itself isn’t exactly cheap and you have to sacrifice personal space.
It’s not just popular towns either. House prices in rural areas are also shooting up. One housebuilder has recently been cashing in on people moving out of the centre. Company Countryside Properties has seen the price of homes built by them within a 50 miles radius of the capitol rise a massive 47% between October 2015 and March 2016.
For now, the gamble is paying off, but if you are buying to let or building new, you better act fast to make the most of the best commuter towns and areas.