The cheapest places to live for London commuters – after rail fares rise
The towns of Chatham, Northampton, Dover and Sheerness have been revealed as the best value commuter locations for workers travelling into London.
Research conducted by Savills measured every town within a 100-minute commute from London, ranking them on the average mortgage repayments in the area and the cost of a monthly season ticket.
It comes as rail fares rise on Sunday by up to 4.9pc, adding hundreds of pounds to the price of annual season tickets.
Despite passenger numbers still being far below pre-pandemic levels, almost half of office workers are now going in five days a week, according to recruitment firm Hays.
It means that “commuting and all of its associated costs and logistics are once again at the forefront of buyers’ minds,” said Frances McDonald, director of research at Savills.
The estate agent analysed commuter towns depending on journey times.
Chatham was found to be the best value commuter location within a 40-minute train journey from London. The average monthly mortgage repayment for a 25pc deposit was £1,223.
It takes 38 minutes to travel from the north Kent town to the capital, costing £504 for a monthly season ticket, including the 4.9pc rise in rail fares. This means it costs commuters £1,727 each month for the cost of their travel and mortgage, based on a 75pc loan on an average home in the area.
This is £1,313 less than the average combined cost of trains and housing in all commuter towns between 20 and 40 minutes outside of London. Across one year, it would save you £15,756. The next best towns for commuter value for money were Rochester and Gravesend, also in Kent.
The average annual rise in rail fares has been included in the calculations, although this does vary slightly between stations.
Further afield, Northampton provides the best value for money for commutes between 40 minutes and an hour. The town is 46 minutes by train from London, and the monthly season ticket costs £688.
While this is above average for towns of a similar distance from London, the real savings come with your mortgage. Savills found the average repayment for a loan with a 25pc deposit was £2,170 for locations between 40 minutes and an hour from London. But in Northampton, it is £839 per month. Combining the mortgage repayments and the price of rail travel, commuters spend £1,528 each month, a saving of £1,155 compared to the average.
The next best for commuters were Gillingham in Kent and Tilbury Town, Essex.
Dover is the cheapest option for commuters travelling between one hour and 80 minutes from London. Journeys take 67 minutes from Dover Priory station. Almost 70 miles from London, it’s no surprise the season ticket cost reflects the greater distance, with commuters paying £645 each month. But with average monthly mortgage repayments at £920, the monthly cost totals £1,565. This was followed by Southampton Central, Hampshire, and Ipswich, Suffolk.
Furthest from London is Sheerness on the Isle of Sheppey in north Kent. It is 96 minutes from London by train, although local estate agent James Perry stressed that “it really is a lot more central than people realise”.
He added: “I know many people that commute to London on a daily basis but [on the other hand] you still get the coastal feel the Isle of Sheppey has to offer with blue flag beaches and nature reserves.”
Monthly season tickets cost £532, and the average mortgage repayment is £902. That means commuters can live and travel from the island for £1,435 on average each month. Those living there would pay £10,332 less each year than the average for towns of a similar distance from London.
This was followed by Harwich, Essex, and Portsmouth, Hampshire.
Ms McDonald said: “Now that employees are firmly back in the office, at least for a couple of days a week, commuting and all of its associated costs and logistics are once again at the forefront of buyers’ minds. But as mortgage costs remain high, they crucially need to consider whether the benefits of smaller monthly outgoings outweigh longer commute times.
“Total monthly spend on mortgage repayments and season ticket costs decreases with longer journey times from the capital. This means more expensive season tickets are offset by the lower house prices available in locations further from London, even once 2024 rail price increases are taken into account.”
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