Rising travel costs are covered for some by increased property values

January 18, 2016 by Brendan

House Prices

A study released by Zoopla, the popular property website, has set out how long it takes a commuter to recoup the cost of travel from the rising cost of property. The list includes commuter-belt areas and indicates the number of days it would take to recover the cost of travel, with the lowest number of days at the top of the compilation.

Solihull is at the number one spot, where commuters travel into Birmingham. As the annual travel costs by rail are £655 and the average house value has increased by 10% to £341,470, it would take just seven days to get travel costs back. Commuters travelling from Surbiton to Central London pay £1,800 a year in rail costs, while the average house price has increased by 10.7% to £567,250. It would take 11 days to reclaim the cost in the value of their house.

In January 2016, rail fares increased by an average of 1.1%, with some parts of the country being affected more than others. Most of the rail fares are regulated, although they increase each year. According to research conducted by the Labour party, the cost of rail season tickets had increased by 25% on average, since 2010. For some commuters, the increase amounts to an extra £2,000 a year.

Prior to buying a new home, it is essential to consider travel and other expenses which are necessary, perhaps consulting with a mortgage adviser, who will be able to help with most situations if CeMAP trained.