Work in London – Live in Wellingborough

Posted by Ben Ryland in Mortgages on 28 September 2016 - Ben is a Senior Credit Analyst at checkmyfile.

Living in London is becoming more and more difficult for those who work there. This isn’t anything new, as our nation’s capital has a massive problem with providing affordable housing for Londoners who simply want to live in the city they work in. Yet as property becomes even further out of reach for many Londoners in the city, people are relocating further and further afield in order to combine affordable housing, and a reasonable cost to commute back into London.

The Northamptonshire town of Wellingborough has now been identified as the most affordable commuter town for Londoners. The average house price in the town is around £183,345 and the towns train station is less than an hour’s commute into London St Pancras, making Wellingborough a hot spot for Londoners to afford their own home and still reach work in London in a reasonable amount of time.

The scale is staggering when you consider that the average house price in London is £740,000.

Many Londoners are finding they are having to move further and further away from the city in order to be able to afford a home. Towns an hour away by train are the most desirable as the commute (and cost involved) is worth it for the savings which can be made when buying a property. This has seen towns such as Rugby and Sittingbourne, as well as Wellingborough seeing a strong interest in property purchases from Londoners moving out of the city.

This trend is showing no signs of slowing either, with Lloyds Bank reporting that average house prices at an hours commute from the capital are 60% cheaper than within London itself.

Of course, the further out of London you move the more expensive the commute becomes. An annual rail ticket from Wellingborough to London St Pancras can cost almost £5,000. But for many home buyers this is a cost worth incurring in order to be able to afford their own home outside of London.

If the thought of being stuck on the train for an hour (and probably more with the inevitable delays) just doesn’t appeal to you, how about a 40 minute commute to closer commuter towns? Hatfield, Billericay and Reading are a few of the closer towns where Londoners looking to buy could settle down. The house prices are more expensive though with averages around £389,000 as you are that bit closer to central London.

London’s high internal prices are not reflected across other major cities in the UK. In both Birmingham and Manchester it is more expensive to live outside of the city than to live within its limits. Every city will have its pricey areas and there has to be a degree of generalisation, but the pattern shows that London aside it is often more expensive to live outside and commute in than to live in the city itself.

The average house price in Birmingham is £172,000, but several of the city’s 40 minute commuter towns including Leamington Spa and Coventry have higher average house prices over £210,000. Add on to this the cost of the annual rail ticket to commute into Birmingham and it becomes even more expensive to live outside the city.

Andrew Mason, of Lloyds Bank Mortgages, says, “Commuters to London who don’t mind a longer journey between home and work could reap the financial benefits of living outside of the capital.

“However the decision of whether to live in the city or further away is not simply a trade-off between financial costs and journey times.

“Quality of life is also a major factor: family circumstances, better schools, physical environment and homes that offer better value for money also come into the equation.

”That explains why, especially outside London, commuters are often prepared to pay a premium to commute when they could be better off in purely financial terms living closer to their place of work.”

Affordable housing within its city limits, remains one of London’s biggest challenges. But for the meantime it seems that Londoners will still be tempted to seek out cheaper alternatives in commuter hotspots including leafy Wellingborough.

Check Your Multi-Agency Credit Report

30 Day Free Trial

Why Mortgages Might Be Agreed In Principle Then Declined

Getting your mortgage Agreed in Principle (also known as a Decision in Principle or AIP) is an important step towards finally getting into a new home, but the relief of getting an AIP can be short-lived if you then get turned down when applying for the actual mortgage.

Published on 29 Oct 2018 by Jamie Mackenzie Smith

Full Article

Am I More Likely to Get a Professional Mortgage?

Before the Credit Crunch of 10 years ago, finding a mortgage valued up to 95% or even 100% LTV and at more than five times your salary level wasn’t difficult - in fact it’s since become clear that it was too easy and was a financial disaster waiting to happen. As such, mortgages have become harder to get accepted for then, with stricter regulations coming into place ensuring that mortgages are only granted to those who can truly afford them.

Published on 14 Sep 2018 by Jamie Mackenzie Smith

Full Article

How your credit file could help you get a good mortgage deal

There have been plenty of reasons to get people thinking about making that first leap onto the property ladder in recent months, including Help to Buy schemes, the removal of stamp duty charges for about 95% of first time buyers and an increase in affordable houses being built.

Published on 9 Aug 2018 by Kiah Phillips

Full Article

The best credit score for a mortgage

A lot of customers come to checkmyfile because they plan on applying for a mortgage – your Credit Report is, after all, the best place to start as it’s helpful on more than one occasion. But often the question is often raised: "what Credit Score will I need to get a mortgage for my dream home?”

Published on 8 Aug 2018 by Jamie Mackenzie Smith

Full Article

Last minute mortgage checks

When could a non-bankrupt person be considered bankrupt? When they’re buying a house.

Published on 17 Jan 2018 by Richard Catlin

Full Article

Guarantor loans can affect mortgage applications, lenders warn

Guarantor lenders are always keen to point out that you don’t need a credit report check to get their loan, just a friend or family member who has a good credit history and is able to act as a guarantor. For those with a poor credit rating, this type of loan provides a solution to a problem – they can afford the loan repayments but are unable to get credit due to prior adverse credit history.

Published on 9 Jan 2018 by Kelly Luff

Full Article

Homeownership among 25 year olds halved in 20 years

Homeownership among 25 year olds has more than halved in the last 20 years, according to a survey conducted for the Local Government Association (LGA). The study carried out by Savilles the estate agents found that only 20% of 25 year olds now own a home of their own, compared to 46% in 1996.

Published on 5 Jan 2017 by Erika Bone

Full Article

Housing Values Rise to 5.6 trillion

While housing prices have displayed a consistent rise over the past several years, according to a recent study conducted by Halifax, the total value of privately owned housing in the UK has exceeded £5.5 trillion for the first time.

Published on 14 Dec 2016 by Tom Magor

Full Article

First-time lenders can borrow against parent's home

In recent decades, the “bank of mum and dad” has increasingly become a cardinal resource for their offspring achieving independence and for first-time buyers attaining a foot on that all-important first rung of the property ladder.

Published on 9 Dec 2016 by Erika Bone

Full Article

Buy to let slows as mortgage rate offers begin to increase

In the last few years we have not only seen some historically low mortgage rates, but also a rush to make property investments. Now the tide may finally be turning, as lenders begin to increase their lowest mortgage rates, and buy-to-let figures drop in the wake of new regulations.

Published on 7 Dec 2016 by Kelly Luff

Full Article


We have loads of great customer reviews