Towns an hour’s commute from central London, which include Crawley, Newbury, Colchester and Chatham have an average property price of £272,000: a significant contrast to the average of £722,000 for a property close to their place of work in central London (zones 1 and 2).
In contrast, the average annual rail cost of £4,944 from these areas in the ‘one hour zone’ is relatively small and means a commuter would need to travel for 91 years for the total rail costs to wipe out the difference in average house prices.
Twenty minutes closer and house prices begin to rise. Commuters from towns approximately 40 minutes away from central London, including Reading, Stevenage, Sidcup and Billericay will have to pay an average house price of £349,000: still some £373,000 (52%) lower than in zones 1 and 2 - and with a less significant average annual rail pass cost at £3,499.
Even at up to twenty minutes distance away from the heart of the capital, commuters from towns such as Ilford, St. Albans and East Croydon benefit from an average house price that is nearly £321,000 lower than in central London.
Though examples are rare, some commuters to central London do live in areas that command higher average house prices: commuters to London from Beaconsfield, for example, pay a higher average house price (£921,516) than central London while also having to cover the cost of an annual rail cost of £3,788. Nearby, Gerrards Cross also has an average house price that is £32,525 higher.
Andrew Mason, Mortgages Director at Lloyds Bank, commented:
"It's no surprise, for London at least, that the further you commute the larger the difference in house prices – though, of course, the journey also gets longer and more expensive. The decision to commute is not simply a trade-off between financial costs and journey times. Quality of life is an important consideration and in nearly all towns in this survey housing affordability is significantly better with a London salary compared to what can be earned locally.
"For commuters with up to an hour's journey to central London, the reward is an annual salary that is, on average, 22%, or £8,500, higher than what they could earn in their place of residence - which is close to £38,500. In the ten most affordable commuter towns the uplift in annual earnings by working in London is nearly £13,000."
