Commuting is an integral part of many people’s everyday lives in the United Kingdom. The amount of time you spend commuting, whether you’re going to work, school, or somewhere else, can significantly affect your quality of life. But did you know that commuting hours can also have an impact on house prices?
First, let’s examine the basics. The time spent by an individual travelling between their home and their place of employment or education and back again is referred to as “commute times”. Depending on the distance, mode of transportation, and traffic conditions, this time might vary significantly. It is not surprising that this factor is often taken into consideration while buying or selling a house given the substantial amount of time spent travelling. Check now to see how much you can get for your property?
The effect of commuting times on house prices is a complicated subject that depends on a number of variables. For instance, houses closer to urban regions or transit hubs generally fetch a higher price than those in rural regions. This is because they provide greater access to facilities, employment options, and cultural experiences. For commuters who use public transit to get to work, homes close to a train station or bus stop could be more appealing. Homes near busy highways or airports may also be beneficial to people who travel frequently or take long commutes to work. As a result, buyers are often ready to pay extra for properties that give quick access to transport networks.
The Effect Of Commute Times On House Prices:
The difference in property prices while commuting 15 minutes, 30 minutes, 45 minutes, and an hour from the city centre was examined in a study of the property market in three major cities: London, Manchester, and Birmingham. For properties located within 15 minutes of a city core, buyers and investors typically spend an average of £449,963. The cost of housing is often lower when the commute is longer.
The data, however, shows that a 30 minute commute is frequently considered the optimal place for the greatest price paid, indicating that individuals appreciate these areas. Properties within a 30 minute commute from major city centres fetch an average price of £512,574 from buyers and investors.
There are differences on a city level, but this translates to 14% more than those situated just 15 minutes away by rail. This rise is considerably greater in London, where it is 19%. Birmingham is an exception, as home prices dip by 1% over a 15 minute and 30 minute commute.
House prices in all three major cities show a constant fall when commute times exceed 30 minutes. In comparison to homes just 30 minutes away by rail, the average price of homes within a 45 minute commute is £406,343, which is a 21% price drop.
The most notable reduction in property prices for this extra 15 minutes of commute time is in the capital. You may save 25% if you purchase a home 45 minutes from the heart of the city as opposed to one 30 minutes away. This would save you an average of 18% in Manchester and 7% in Birmingham.
In What Ways Does This Affect Commuter Towns?
Tenants can save a lot of money on rent each month while still living in commuter towns and other outlying areas and yet have a short commute from their place of employment. Demand for commuter towns will probably rise even more as the cost of living problem is predicted to severely strain people’s budgets. In the years to come, the regions where more transportation investments are planned might witness further growth.
Investors might discover very appealing real estate investment possibilities within the commuter belt areas. It is also worthwhile to keep an eye on locations that are undertaking significant infrastructure and transit upgrades if you’re looking to purchase away from the big city in a location where property prices might rise in the future.
