People who work in Scotland’s two biggest cities could save themselves a substantial amount of money when buying a house if they are prepared to commute around half an hour to work.
Significantly Lower House Prices
New research by the Bank of Scotland has revealed that property in towns approximately 30 minutes away from Edinburgh by train—such as Dunbar, Falkirk and Livingston—are, on average, 36% cheaper than in the city centre. The average house price of £243,200 in Edinburgh is £86,371 higher than the average of £156,829 found in these commuter towns. Travelling 30 minutes to work by train will cost an average of £1,700 per year.
Even towns up to 60 minutes away, such as Dunblane, Kirkcaldy and Motherwell, have an average house price of £166,502—£76,700 less than the capital. However, this hour-long commute comes with an average annual rail cost of around £2,060.
Popular commuter towns for Glasgow, with a journey time of around 30 minutes—such as Linlithgow, Stirling, Greenock and Motherwell—also benefit from house prices that are, on average, £22,086 (13%) lower, with an average price of £148,614 compared to almost £171,000 in Glasgow. In these areas, an average annual rail pass costs around £1,863.
Aberdeen’s Commuter Towns More Expensive
Unlike Edinburgh and Glasgow, workers in Aberdeen may actually be better off living in the city itself, benefiting from a shorter journey to work and lower house prices. The average house price in Aberdeen is around £195,234, while property in towns approximately 30 minutes away by train—such as Inverurie and Insch—is, on average, 21% more expensive. A rail pass for this commute costs about £1,828 per year.
Workers in London have to commute for around an hour to make significant savings on property prices, but those willing to do so can save an average of 60%.
House prices in selected towns about an hour’s train journey from the capital—including Crawley, Windsor, Rochester, Peterborough and Oxford—average £316,300, which is £480,858 less than the average £797,158 for a property within travelcard zones 1 and 2. This is also £199,778 less than the average property price in zones 3 to 6.
The difference in house prices for commuters travelling roughly 60 minutes would effectively cover the current annual rail cost (£5,169) for 93 years.
Homebuyers looking to purchase a home in a town about 40 minutes from central London—such as Hatfield, Billericay, Orpington and Reading—will pay an average price of £424,903. This is £372,255 (47%) lower than in zones 1 and 2, and comes with a lower annual rail pass cost of £3,615.
The difference of £372,255 would pay for the current annual rail cost for nearly 103 years.
Distance to Work a Key Consideration
“Considering how far away any potential new home is to your work is often a key factor when buying a new home,” commented Andrew Mason, mortgage product director at Lloyds Bank. “Whilst it’s not surprising that homes outside of central London are typically cheaper, the difference is significant.”
“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,” he added.
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Please note: This article is for general information purposes only and does not constitute legal advice. It should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. If you need advice on a legal matter, get in touch with our team.
