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Workers Struggle To Afford To Live In London
London workers pay up to 60% more on housing in order to live in the city they work than those living 1 hours travel away.
Research by Lloyds Bank has found that for Londoners, living in the most central areas of the city adds 60% or a total of £447,015 to average property prices. This is compared to the average property prices in established commuter areas, where good transport links allow access to central London through 1 hours travel.
Wellingborough, Southend, Sittingbourne and Rugby, all around 1 hours travel away from the heart of London have an average house price of £294,903, compared to the £741,919 necessary to buy the average property in central London.
Cost Of Commuting Far Cheaper Than Buying In London
The cost of commuting an hour each way is a sizeable £4,989 annually but when compared to the £447,015 difference in house prices, it would take a massive 89 years to even out.
For those living 40 minutes of travel away from central London, namely Hatfield, Billericay, Orpington and Reading, average house prices are £389,000. It would take almost 100 years of £3,534 annual train fares to make up the £353,000 difference.
Other Reasons People Commute
Director of mortgage products at Lloyds Bank, Andrew Mason says that people also consider other issues when deciding where to live. In their findings, “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.”
Mr Mason states that “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.” This is the case in cities such as Birmingham and Manchester.
For Independent Mortgage advice please contact us at Hoskin Mortgages for more information.
Clare Allen.
Hoskin Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority number 613005. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
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