According to a recent study by Lloyds Bank, spending an hour travelling to work in London by rail could save homeowners £480,000 on average.
The report indicates that living in a number of areas that are within one hour of London and travelling by rail can be up to 60% less expensive than central areas of the capital. The report compared property prices in major cities across the UK with commuter towns, taking the duration and cost of travelling to work into consideration. The average cost of a property located from 41 minutes up to one hour away from the capital is £316,000. The average cost of a home within zones 1 and 2 in London, meanwhile, is £797,158.
However, the study by the bank only factors in travel on the National Rail service, rather than the total commute from door to door. Lloyds stated that the money saved on buying a property one hour away from central London would pay for 93 rail tickets at an average cost. The research indicated that even commuting 40 minutes into London would be beneficial financially.
The mortgage product director at Lloyds, Andrew Mason, said:
“While it’s not surprising that homes outside of central London are cheaper, the difference is significant. Commuting into London is a smart move for those wishing to benefit from the higher wages and a cheaper, and typically larger, home.”
CeMAP qualified mortgage advisors are able to help buyers to locate mortgages best suited to their circumstances.