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Train fares eat into savings made by moving out of London | |
(about 3 hours later) | |
Commuters who move to cheaper accommodation outside London may not be saving as much as they think. | Commuters who move to cheaper accommodation outside London may not be saving as much as they think. |
Research by the estate agency Haart suggests that around half of such savings are immediately eaten up by the cost of train fares, which rose by an average of 2.8% last week. | Research by the estate agency Haart suggests that around half of such savings are immediately eaten up by the cost of train fares, which rose by an average of 2.8% last week. |
Allowing for season ticket costs, some areas can be more expensive to live in than London itself. | Allowing for season ticket costs, some areas can be more expensive to live in than London itself. |
But other towns provide an average cost advantage of more than £8,000 a year. | But other towns provide an average cost advantage of more than £8,000 a year. |
The research suggested commuters moving to Oxford or Cambridge would find the cost of a season ticket more than outweighs the benefits of cheaper housing. | The research suggested commuters moving to Oxford or Cambridge would find the cost of a season ticket more than outweighs the benefits of cheaper housing. |
Thus, a commuter moving to Cambridge may save £3,730 a year on the cost of a mortgage, but will pay £4,160 for a season ticket, leaving him or her £430 out of pocket. | Thus, a commuter moving to Cambridge may save £3,730 a year on the cost of a mortgage, but will pay £4,160 for a season ticket, leaving him or her £430 out of pocket. |
Someone moving to Oxford will fare even worse, ending up more than £2,000 a year worse off. Oxford has relatively high property prices. | Someone moving to Oxford will fare even worse, ending up more than £2,000 a year worse off. Oxford has relatively high property prices. |
The analysis of 14 commuter hotspots suggests that, on average, people save £10,779 a year by moving out of London, but then spend £5,160 a year on train fares. | The analysis of 14 commuter hotspots suggests that, on average, people save £10,779 a year by moving out of London, but then spend £5,160 a year on train fares. |
Bargain locations | Bargain locations |
On the other hand, commuters can make considerable savings by moving to less expensive locations, such as Southend in Essex, Southampton, or Grantham in Lincolnshire. | On the other hand, commuters can make considerable savings by moving to less expensive locations, such as Southend in Essex, Southampton, or Grantham in Lincolnshire. |
The average price of a house in Southend is less than half that in London. | The average price of a house in Southend is less than half that in London. |
After taking into account the cost of an annual season ticket, commuters can save themselves more than £8,600 a year by living on the Essex coast. | After taking into account the cost of an annual season ticket, commuters can save themselves more than £8,600 a year by living on the Essex coast. |
The same is true of Southampton, although travellers will have to spend an hour and 20 minutes on the train to Waterloo. | The same is true of Southampton, although travellers will have to spend an hour and 20 minutes on the train to Waterloo. |
Other locations where cheaper house prices easily outweigh the cost of a season ticket include Aylesbury, Colchester and Rugby. | Other locations where cheaper house prices easily outweigh the cost of a season ticket include Aylesbury, Colchester and Rugby. |
By living in those towns, commuters will save themselves more than £7,000 a year. | By living in those towns, commuters will save themselves more than £7,000 a year. |
However, someone commuting to London from Leamington Spa in Warwickshire will save much less: £2,043. | However, someone commuting to London from Leamington Spa in Warwickshire will save much less: £2,043. |
Those living in Swindon, Reading or Norwich are likely to make average savings, of between £5,000 and £6,000. | Those living in Swindon, Reading or Norwich are likely to make average savings, of between £5,000 and £6,000. |
The cost of commuting itself can also be off-putting. The latest fare rises mean the price of an annual season ticket from Dover to London has gone through the £5,000 barrier for the first time. | The cost of commuting itself can also be off-putting. The latest fare rises mean the price of an annual season ticket from Dover to London has gone through the £5,000 barrier for the first time. |
"For a couple who both live regionally, the annual cost of travelling in to London could mount up to £10,000," said Haart chief executive Paul Smith. | "For a couple who both live regionally, the annual cost of travelling in to London could mount up to £10,000," said Haart chief executive Paul Smith. |