Fed up with London house prices? New figures show an hour’s commute could save you £450,000
London workers could save themselves almost 60 per cent of the cost of a home if they are willing to live outside the city and commute daily for an hour each way
WORKERS could save themselves thousands of pounds by living an hour's commute from their office, according to the latest research.
People working in London could save almost £450,000 on the cost of a home if they live somewhere such as Wellingborough, Southend or Rugby and commute for an hour each way every day.
Average house prices drop by 60 per cent from £741,919 in central London to £294,903 in commuter towns outside of London.
But in Manchester and Birmingham it is cheaper to live in the city.
Wellingborough is the most affordable commuter town.
The research, undertaken by Lloyds Bank found if people are willing to travel for longer they could save money.
Even when taking into account the annual rail cost for a one hour daily commute each way (£4,989), a commuter would have to make the same journey for 89 years for the total rail costs to wipe out the benefit in house prices.
Closer to the capital, commuters who live approximately 40 minutes outside of central London, including Hatfield, Billericay, Orpington and Reading, could save 48% (£353,000) outside of the city, with their average house price £389,000 and with a lower average annual rail pass cost at £3,534.
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Even commuters who live just 20 minutes away from the heart of the capital could find it more cost effective, with commuters from towns such as Ilford and Elstree and Borehamwood benefiting from an average house price that is nearly £297,795 lower than in central London.
Andrew Mason, Lloyds Bank Mortgage Products Director, commented: “Commuters to London who don’t mind a longer journey between home and work could reap the financial benefits of living outside of the capital.
“However the decision of whether to live in the city or further away is not simply a trade-off between financial costs and journey times.
"Quality of life is also a major factor: family circumstances, better schools, physical environment and homes that offer better value for money also come into the equation.
"That explains why, especially outside London, commuters are often prepared to pay a premium to commute when they could be better off in purely financial terms living closer to their place of work.”
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