Travel times have a major impact on property prices

House prices fall by about £1,000 for every additional minute of travel time outside the M25 on routes out of London, according to research by Savills. It also shows that commuter numbers and house prices are directly linked.

Lucian Cook Director Savills research comments, “More affluent commuters are generally attracted to high value areas, where they can enjoy an improved quality of life, which in turn leads to an increased demand for property and prices go up.”

For others affordability is a key issue with those affected falling into two groups. The first group are attracted to less expensive but relatively heavily built up areas close to London whilst the second group comprises those looking for an improved living environment. “This group are increasingly moving further from London and having to accept longer commutes in a trade off with house prices. As a result in the past five years, house price growth has been much higher at the edge of commuter limits.”

Of the rail lines within the sample, the London to Norwich line (which runs via Chelmsford and Colchester) shows the highest house price growth in the past five years, reflecting a trend for strong house price growth along lines running north and east in the past five years. In contrast during the preceding five years, growth was more concentrated along the traditional commuting lines to the South and West which include the strong commuter belt running through Kent and Sussex, and other hotspots in Hampshire.

“Looking ahead, we expect further expansion of the London commuting zone over the next decade with wealth generated in the Capital affecting the housing market over a wider geographical area,” say Cook. “Particularly as we see a continued trend towards part time commuting with increased numbers of people working from home for part of the week. This is likely to lead to a greater demand for second homes in the City as individuals minimise their number of journeys”.