New research conducted by Lloyds Bank has found that homeowners living 60 minutes outside of Central London could pay up to 60% less for a property.
Workers in Central London can save an average of £483,342 by commuting up to an hour each day from areas such as Basingstoke, Crawley, Gravesend, Windsor and Northampton.
Prices in these areas are on average around £325,091 – a whopping £483,342 lower than the average of £808,434 for a property within travelcard zones 1 and 2.
A 40-minute commute will save homebuyers £375,114 (46%)
Buying in towns approximately 40 minutes away, such as Billericay, Hatfield, Staines and Woking, will pay an average price of £433,320 – which is still £375,114 (46%) lower than in zones 1 and 2
A 20-minute commute will save homebuyers £295,075 (36%)
twenty minutes distance away from the centre of the capital, commuters from towns such as New Cross and East Croydon benefit from an average house price £295,075 lower than in Central London.
Andrew Mason, Mortgages Director at Lloyds Bank, said: “Buying a home in Central London is out of reach for many where house prices are around 16 times the average UK wage. In almost all towns in this survey, housing affordability is significantly greater with a London salary compared to what can be earned locally and for commuters with up to an hour’s journey, the reward is an annual salary that is, on average, £8,600 (18% ), higher than what they could earn in their local neighbourhood which is around £40,000.”
Although many commuter towns offer affordable properties, but with longer and more expensive journeys, the decision to commute is not simply a trade-off between financial costs and journey times. Quality of life is an important consideration. Family circumstances, schools, physical environment and value for money all come into the balance.