Most affordable London commuter towns: How a one hour commute can save buyers £500,000 on London house prices

 
Emma Haslett
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Peterborough was named one of London's best commuter towns (Source: Getty)

Living an hour outside London could slash half a million pounds off house prices compared with buying a home in zones one and two of the capital, according to new research.

Commuter towns such as Crawley, Windsor, Rochester and Peterborough have an average house prices of £316,000, a survey by Lloyds Bank has found.

That is just over £480,000 cheaper than the average house prices of £797,158 for homes in zones one and two - and just under £200,000 cheaper than the average prices in zones three to six.

Even those living 40 minutes away from the capital, in towns such as Hatfield, Billericay, Orpington and Reading, will save more than £372,000 on London house prices, which makes the average annual rail pass cost of £3,600 seem like a bargain.

And 20 minutes away from the capital, in towns such as Ilford and Elstree, average prices are £300,000 cheaper than in zones one and two.

Read more: More signs of wavering London house prices as UK sales demand falls

Commuter savings

Towns Commute Average house price Difference from zones 1&2 Annual season ticket
New Cross, Wimbledon, Ilford, Alexandra Palace, Hanwell, Tottenham 20 minutes £497,831 £299,328 £2,481
Billericay, Hatfield, Staines, Bexley, Woking, Chelmsford, Harlow, Hemel Hempstead, Orpington, Rickmansworth, Reading, Hitchin, Stevenage, Brentwood, Luton, Sidcup 40 minutes £424,903 £372,255 £3,615
Basingstoke, Crawley, Gravesend, Windsor, Northampton, Tunbridge Wells, Wellingborough, Rugby, Winchester, Peterborough, Swindon, Oxford, Kettering, Rochester, Sittingbourne, Southend, Tonbridge, Wokingham, Chatham, Colchester 60 minutes £316,300 £480,858 £5,169

However, the research warned that in some areas, such as Beaconsfield, Gerrards Cross, Ascot and Weybridge, local house prices are actually higher than in central London.

Meanwhile, the most affordable commuter town was Wellingborough, in Northamptonshire, where the average house prices is £197,742. That was followed by Kettering, also in Northamptonshire, where the average price is £206,873, and Peterborough in Cambridgeshire, where the average price is £207,458.

"Considering how far away any potential new home is to your work is often a key factor when buying a new home. While it’s not surprising that homes outside of central London are typically cheaper, the difference is significant," said Andrew Mason, mortgage product director at Lloyds Bank.

“What’s interesting is that the exact opposite can be said for the UK’s other two largest cities, Birmingham and Manchester, where it costs more to live outside of the city and make the commute."

Read more: London house prices have fallen for the first time in eight years

London's most affordable commuter towns

Commuter Town Average house price Difference in affordability from zones 1&2 Rail journey time to central London

Wellingborough £197,743 -21% 51 mins
Kettering £206,873 -28% 59 mins
Peterborough £207,458 -29% 53 mins
Swindon £234,466 -22% 59 mins
Chatham £234,652 -19% 54 mins
Rugby £237,263 -13% 50 mins
Northampton £238,306 -24% 48 mins
Luton £250,593 -8% 24 mins
Sittingbourne £254,457 -25% 60 mins
Basildon £259,176 -19% 38 mins

Read more: Why London's property market is still firmly at risk of a bubble

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