An interesting report from online estate agent e.Moov has suggested that property owners working in London could cut their costs in half, if they are prepared for a longer commute to the capital’s main train stations.
Location to station
The location of a property is proving to be the most important factor for investors. With average price houses in the capital standing at £588,000 however, purchasing property in London means that preferred locations are being sacrificed in favour of affordability.
With a timely commute proving inevitable for many owners, the e.Moov research looks at how investing in more further afield regions can save investors money.
e.moov looked at areas around London’s key train stations, then looked at other regions with roughly double the commute into the capital. Their findings could tempt many to consider increased travel times for the benefit of more money in their pockets.
Kings Cross
Commuters into Kings cross from regions such as Edgware face a commute time of around 33 minutes. Property prices in this area average at £443,772 but commuters willing to travel just under an hour to work may be tempted by homes in Peterborough, where costs are £190,000.
Waterloo
A direct commute from Southampton to Waterloo takes just one hour and ten minutes. Prices in the city average at £248,000 and the region is a popular location for retirees. However, with savings above £300,000 on regions such as South Wimbledon, where a commute to Waterloo still takes 35 mins, doubling the travel time seems a viable money saving option.
Victoria
Commuting from the east side of the capital is proving more popular with increase in developments such as the C2C line and a rise in affordable property in places such as Essex. Kent is also proving a popular location in which to invest and an area such as Rochester offers a commute of 51 minutes into London, with property prices averaging at £226,000.
This is in comparison to regions such as Walthamstow, where commutes to Victoria average at 34 minutes. A property in Rochester is £143,650 cheaper than the average price for a home in Walthamstow.
Liverpool Street
A seemingly short hop across the capital from areas such as Shepherds Bush to Liverpool Street can still take 30 minutes. Property prices in Shepherds Bush average at nearly £700,000. However, commuting from places such as Ipswich, despite taking roughly 1 hour to Liverpool Street, can save vast amounts of money in terms of home prices. Property costs in Ipswich average at roughly £220,000, less than a third of the average home in Shepherds Bush.[1]
Changing trends
eMoov’s founder Russell Quirk, suggests, ‘we’ve seen the commuter trend move from the outer London boroughs to surrounding areas outside of the capital. Who’s to say this won’t continue as house prices in these new commuter zones catch up with their new found demand?’[1]
Quirk continued by saying, ‘although an hour’s commute might seem a lot, when you consider the money you save for 25 to 30 extra minutes on the train and how much more you get for your money, it could really make sense.’[1]
[1] http://www.propertyreporter.co.uk/property/doubling-your-commute-could-halve-your-property-costs.html