More homeowners are quitting London for towns within commuting distance of the capital. Estate agent Savills has revealed the commuting hotspots that are attracting those for whom the city is increasingly unaffordable along with those who want to take advantage of the value of their London home to buy a bigger one elsewhere.
In its research, Savills revealed that towns with a good transport hub such as a railway station were in the highest demand, particularly those within a 40-minute journey to central London.
Those towns with good rail links, coupled with an increase in new homes, saw the biggest spike in passenger traffic heading towards London. The likes of Aylesbury Vale Parkway in Buckinghamshire and Didcot Parkway in Oxfordshire have seen spikes in house prices fuelled by an influx of commuters.
House price growth in those areas is 5 percent higher than neighbouring areas over the last five years, according to Savills. And the knock-on effect is that commuting-distance areas with lower-value homes are becoming increasingly popular, particularly those on the HS1 link to Birmingham.
In fact, the commuting distance is now stretching beyond the traditional Home Counties as far Coventry, Rugby and Birmingham itself as people take advantage of regular, fast trains to London without the cost of living in the capital.
Meanwhile, more people than ever before are leaving London, according to figures from the Office for National Statistics. The number of people in their 30s who are moving out of the capital has risen by 27 percent in the last five years with the traditional commuter belt their destination.
Savills said 14 percent of its new home buyers are those moving from London with 39 percent of them buying a larger property, demonstrating the financial power of London property.
Its report said: “We expect the ripple effect of Londoners moving to the commuter belt to continue. Searching for more space, they are likely to bring London’s equity with them and will be targeting markets with the quickest links to the capital.
“These include established prime locations and up-and-coming areas that are more affordable than their neighbours.
“Yet we also expect the ripple effect to move beyond London’s commuter zone to markets in the Midlands and the north. These markets have seen house prices rise more in line with wages and therefore remain affordable. They will have the most capacity for growth over the next few years.”
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