Commuter areas set to outpace London prices in 5 years

 
Commuter areas set to outpace London prices in 5 years

In the last few years, commuter areas have become more popular than the capital itself thanks to the increase in prices within London and the inability of many to be able to afford to live there. By moving just a few miles out of the city, people can get a much more affordable property. 

However, this relatively new-found popularity will see the commuter areas of the country become even more expensive in years to come, and a new report has claimed that price growth in these areas will outpace that of central London within five years. 

Savills said relative value offered compared to the capital is likely to underpin medium-term house price growth in the commuter areas away from the city centre. However, in the immediate future, growth in prices will remain hampered by stamp duty issues, mortgage market review and a relatively slow market in and around London. 

Showing how price growth compares at the moment, Savills said prime London prices at present are more than 36 per cent above their previous 2007 peak. However, commuter belt areas are just six per cent above where they were pre-recession. 

Looking forward across the next five years, however, Savills said this will all change, with the more expensive commuter areas outpacing growth in prime London properties. 

Within London, these types of home will see prices climb by between 18 and 22 per cent depending on where they are situated within the capital. However, London suburbs, inner commuter (up to 30 minutes train journey to London) and outer commuter (up to 60 minutes by train) towns, are all areas that are likely to see stronger growth, with Savills predicting these will climb 24.5 per cent, 24 per cent and 23.4 per cent respectively between 2015 and 2020. 

"We expect the trend for urban living to continue as London buyers seek out vibrant locations where they don’t have to sacrifice the convenience of living close to shops, restaurants and leisure facilities," said Sophie Chick, Savills research associate director.