With prices of homes and flats in London at skyrocketing rates, many Londoners have opted to live outside of the capital, some as far as an hour's commute. According to a report from telegraph.co.uk, the new residence located in the outskirts of the UK capital can help an ordinary worker save £300,000 per year.
The savings, computed by Lloyds Bank, is at that pegged amount even including the costs for the commute. The research was triggered by the current skyrocketing prices of homes and flats in London. The high costs have made living in the capital, thus nearer to the workplace a poor financial decision.
Other findings of the study showed that decision to just commute to work was 'not simply a trade-offf between financial costs and journey times but also as to accounting the quality of life." According to Andrew Mason, Lloyds Bank Mortgages Director who commissioned the study, found that those who commuted have more money to spend when getting home. This is because of the lower cost of mortgage with the high salaries received from the city job.
Mason added, as quoted by dailymail.co.uk, "Quality of life is an important consideration and in nearly all towns in this survey housing affordability is significantly better with a London salary to what can be earned locally. For commuters with up to an hour's journey to central London, the reward is an annual salary that is, 22 per cent, or £8,500 higher than what they could earn locally."
The towns identified in the study were Crawley, Newbury, Colchester and Chatham. In these areas, property prices averaged at £272,000 while London property prices are at £722,000. The average ticket price for trains for a year in a one hour radius from London is worth just £4,944.
In order for a commuter to spend the savings they get, they need to travel 91 years on the rails.
