New research conducted by London lettings and estate agent, Benham and Reeves, reveals that there is a correlation between commute times and house prices.
The findings prove that when it comes to finding the ideal home, location is considered the most important aspect. Homebuyers paid the most for homes with a 30-minute train journey to the city.
By analysing the property market across London, Manchester, and Birmingham and comparing house prices with the commute to the city, Benham and Reeves were able to generate these findings.
The price homebuyers are willing to pay
Living close to the city has many benefits such as fast access to leisure facilities, local amenities, and entertainment. Good transport links make the commute to the city easy while fewer links make the journey tiresome and time-consuming.
On average, homebuyers pay £449,963 to live within 15 minutes commute to the city centre. While on average, homebuyers will pay £512,574 within a 30-minute commute of the city centre, 14% more than those just 15 minutes away by train.
Depending on which city, the prices vary. The increase is highest in London at 19% while Birmingham is the exception where property prices drop by 1% between a 15 and 30-minute commute.
In contrast, a longer commute generally means a more affordable home. The research shows that commutes over 30 minutes have a significant decline across all three major cities
On average, homes within a 45 minute commute command £406,343, making them -21% more affordable than those just 30 minutes away by train.
Move an hour out of the city centre by train and the average cost of a property falls further still to £354,390 – a -13% saving for another additional 15 minutes.
The biggest saving is shown in London with a decline at -19%, while in Birmingham and Manchester the additional 15 minutes only takes 1% off of the average price paid for a property.
Director of Benham and Reeves, Marc von Grundherr, concludes: “While the pandemic was supposed to have spurred a mass exodus for central city living, it seems as though homebuyers still value a quick and convenient commute into the city centre, with half an hour being the sweet spot.”
“For many, this provides the balance between a commutable distance and a larger home on the peripherals or commuter belt of a major city, where they aren’t subject to the faster pace of life that inner-city living provides.”
“These are particularly desirable factors amongst many second and third rung buyers and these larger homes, together with high demand, mean the price paid for them sits some way above other areas of the market.”