A 60 minute commute can save London workers 480,000 on their home

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1 NOT FOR BROADCAST OR PUBLICATION BEFORE HRS MONDAY 30 TH OCTOBER 2017 A 60 minute commute can save London workers 480,000 on their home House prices for homeowners living 60 minutes outside of central London are 60% lower ( 480,000) on average. A 40 minute commute into central London will save homebuyers 372,255 (47%) and a 20 minute commute will save 299,328 (38%). However, commuters to Birmingham and Manchester pay more to live away from the city. Those living 60 minutes outside of London and making the commute to work every day are financially better off when compared to those living much closer to their place of work, according to new research by Lloyds Bank. Homebuyers willing to commute for an hour save 480,000 on average Unsurprisingly, homebuyers can get more for their money outside of central London (zones 1 and 2) due to lower property prices. Commuting for an hour can save homebuyers an average of 480,858 (60%). House prices in a selection of towns about an hour s train journey away from the capital (including Crawley, Windsor, Rochester, Peterborough and Oxford) are, on average, around 316,000; that is 480,858 lower than the average of 797,158 for a property within travelcard zones 1 and 2. This is also significantly lower ( 199,778) than the average property price in zones 3 to 6. (See Table 1) The difference between house prices for commuters travelling approximately 60 minutes would pay for the current annual rail cost ( 5,169) for 93 years. A 40 minute commute will save homebuyers 372,255 (47%) Homebuyers looking to buy a home in a town approximately 40 minutes away from central London (including Hatfield, Billericay, Orpington and Reading), will pay an average price of 424,903; still 372,255 (47%) lower than in zones 1 and 2 - and with a lower average annual rail pass costing 3,615. The difference of 372,255 would pay for the current annual rail cost for nearly 103 years. A 20 minute commute will save homebuyers 299,328 (38%) Even at up to twenty minutes distance away from the heart of the capital, commuters from towns such as Ilford and Elstree benefit from an average house price that is 299,328 lower than in

2 central London. This is enough to pay the current annual rail cost of 2,481 for 120 years. Some areas, such as Beaconsfield command a higher price tag than central London Examples are rare, but some commuters to central London live in areas that command higher house prices. These include commuters from Beaconsfield, who pay an average of 1,054,215 compared to the average price house price of 797,158 for those living in central London, a difference of 257,057. Gerrards Cross ( 903,142), Ascot ( 824,421), Weybridge ( 822,672) and Wimbledon, ( 807,574) are also more expensive. Andrew Mason, mortgage product director at Lloyds Bank, commented: "Considering how far away any potential new home is to your work is often a key factor when buying a new home. Whilst it s not surprising that homes outside of central London are typically cheaper, the difference is significant. "Commuting to London is a smart move for those wishing to benefit from the higher wages on offer whilst buying a cheaper and typically larger home. 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." The most affordable commuter towns outside of London The most affordable commuter town is Wellingborough in Northamptonshire where the average house price is 197,743, 4.5 times the average annual earnings for central London ( 43,923) compared to 5.7 times the average wage for those working within Wellingborough ( 34,663). The next most affordable commuter town is Kettering, also in Northamptonshire with an average house price of 206,873 followed closely by Peterborough in Cambridgeshire ( 207,458). Both with an average house price that is 4.7 times the average annual earnings for central London, which is a considerable difference to the average annual earnings of those working in Kettering (6.5) and Peterborough (6.6). Commuters in the ten most affordable towns are earning, on average, over 9,000 more per year than they would in their place of residence ( 34,807). (Table 2) Where living in a city is more cost effective Unlike London and the South East, commuters to some of the UK's major cities are paying more than if they lived in the city. For commuters to Britain s second and third largest cities, Birmingham and Manchester, house prices are often higher outside the city. The average house price in Birmingham is around 181,758, but several towns around 40 minutes away (rail) Derby, Coventry, Burton on Trent and Leamington Spa command higher average house prices of 225,353. Commuters from these towns also have to pay 2,261, on average, for a current annual rail pass.

3 The same applies to a number of towns that are approximately 40 minutes away from Manchester, such as Warrington, Chorley, and Macclesfield, which all have a higher house price ( 216,236) than in Britain s third largest city ( 174,972). - Ends

4 Table 1 Commuter Towns to London 2017 House Price* Difference in House Price compared with areas in Zones 1&2 Areas in Travelcard Zone 1 and 2 797,158 Areas in Travelcard Zone 3 to 6 516,079 Tow ns on average 20 minutes aw ay (journey times range from 10 to 20 minutes) 497, ,328 (38% low er) Tow ns on average 40 minutes aw ay (21 to 40 minutes) Tow ns on average 60 minutes aw ay (41 to 60 minutes) 424, ,255 (47% low er) 316, ,858 (60% low er) Source: Land Registry, ATOC and National Rail Notes: * 12 months to July 2017 ** Fares as at September 2017 Difference in House Price compared w ith areas in Zones 3&6 91,175 (18% low er) 199,778 (39% low er) Annual season ticket cost** Towns / Suburbs 2,481 Includes: New Cross, Wimbledon, Ilford, Alexandra Palace, Hanw ell, Tottenham 3,615 Includes: Billericay, Hatfield, Staines, Bexley, Woking, Chelmsford, Harlow, Hemel Hempstead, Orpington, Rickmansw orth, Reading, Hitchin, Stevenage, Brentw ood, Luton, Sidcup 5,169 Includes: Basingstoke, Craw ley, Gravesend, Windsor, Northampton, Tunbridge Wells, Wellingborough, Rugby, Winchester, Peterborough, Sw indon, Oxford, Kettering, Rochester, Sittingbourne, Southend, Tonbridge, Wokingham, Chatham, Colchester

5 Table 2: Most Affordable Commuter Towns 2017 within 60 minutes of central London* Commuter Town County Price July Annual Local Earnings 2 House Price to Local Earnings House Price to Earnings in Travelzone 1 & 2 3 Difference in Affordability Fastest Rail journey time to central London Wellingborough Northamptonshire 197,743 34, % 51 mins Kettering Northamptonshire 206,873 31, % 59 mins Peterborough Cambridgeshire 207,458 31, % 53 mins Sw indon Wiltshire 234,466 34, % 59 mins Chatham Kent 234,652 35, % 54 mins Rugby Warw ickshire 237,263 38, % 50 mins Northampton Northamptonshire 238,306 33, % 48 mins Luton Bedfordshire 250,593 40, % 24 mins Sittingbourne Kent 254,457 32, % 60 mins Basildon Essex 259,176 35, % 38 mins Source: Land Registry, ONS *Based on fastest rail journey possible

6 NOTES TO EDITORS: The Lloyds Bank commuter town s survey looks at differences in houses prices between the commuter town and the place of employment as well as the costs and time of commuting when travelling to work using the national rail system months to July 2017 Source: Land Registry 2 Based on gross annual average earnings for full time workers in the local authority of the commuter town - Source: ASHE, ONS 3 Lloyds Bank estimate based on local authorities in travel zones 1 and 2. Gross annual average earnings for full time workers is estimated to be 43,923 Source: ASHE, ONS 4 Cost of rail passes and commuting time is from the Association of Train Operating Companies and National Rail website collected in September NB: The cost total cost of commuting by rail doesn t take into consideration the associated costs and time of getting to and from a train station. Data produced by Land Registry Crown copyright For further information or "This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. Lloyds Bank plc all rights reserved 2017." This information is intended for the sole use of journalists and media professionals.