Property prices are a third cheaper in locations that are a 30-35 minute commute from central London, according to global real estate advisory firm CBRE’s Regional Land report.
The findings also revealed that an increase of one minute travel time diminishes house price value by approximately £11,000.
The research also documents that all regions across the UK witnessed continued house price growth throughout Q3 2014, with London performing strongest (21%).
Outside of the capital, the Outer Metropolitan was the strongest performing region, seeing an annual price growth of 14.4%. This was closely followed by the South East at 13.2%.
The weakest performing region continues to be in the North of England, with regional land prices up 4% over the last year. This is nearly half the rate of growth recorded in Q2 2013.
“The Regional Land report clearly shows the significant house price reduction as soon as you leave the capital. Currently, the average price of a property within a 20 minute commuting time of London is £415,000, meaning that buyers can save up to £115,000 by moving less than half an hour out of the city,” said Jennet Siebrits, Head of Residential Research at CBRE.
“Interestingly, and in contrast to London, commuters in the regional cities are not so reliant on public transport. Our findings show much weaker relationship between commuting distance and house prices, with no identifiable correlation found in Bristol and Leeds,” she added.
Looking forward to next year, CBRE predicts sustained demand across the traditional regional housing markets into 2015, but regional price inflation is likely to soften compared to 2014 price performance.
“We expect the prime and near-prime market in 2015 to remain strong, with secondary land values beginning to level off, as regional house price and wage inflation put the squeeze on developer profit margins,” Siebrits concluded.
Adam McHenry, Director and Head of Sales at Cadman Homes, a local family owned and run estate agents in Rugby agrees, despite Rugby having a booming property sales and lettings market with asking prices rising and rents strong.
“We are seeing more demand than supply for both sales and lettings, with strong demand being turbo-charged by out of the area buyers and tenants that are moving to the Rugby area due to strong links to London, Birmingham and beyond”. Adam said.
Due to these factors there is a shortgage of 3 bed houses to rent, and 2,3 and 4 bed houses to buy in Rugby, as demand from residential buyers and investors remains strong. Cadman Homes are also specialists in shared ownership and are seeing strong demand from those looking to get onto the housing ladder with Help to Buy and shared owenrship.
So if you are looking at letting a property in Rugby, or selling anhouse in the Rugby area, contact Adam and the team on 01788 560 905 or pop into the Castle Street office.