House prices pay­ing off for com­muters

South Wales Echo - - NEWS -

HOUSE prices are ris­ing so fast in one com­muter area around Cardiff that the in­crease in value can cover the an­nual cost of a rail sea­son ticket in un­der 12 days.

The re­search by Zoopla com­pared house prices in com­muter towns across the UK last year with the cost of an­nual rail fares.

And the re­search, re­leased this week, showed home­own­ers in Pe­narth com­mut­ing into the cap­i­tal could have paid off their an­nual train travel in 11.86 days – the third short­est pe­riod in the UK – from the in­creased value of their prop­erty.

The town’s av­er­age prop­erty price in 2016 was £304,569, a rise of 5.52% over the year – or about £43 a day.

With the an­nual travel card cost for those work­ing in Cardiff stand­ing at £516, it would take less than two weeks for home­own­ers to pay it off based on the ever-in­creas­ing home.

It means home­own­ers in Pe­narth would have earned enough by to­mor­row from the in­creas­ing prop­erty val­ues to be able to pay off their year in com­mut­ing costs al­ready.

The sea­side town is in the UK’s top three be­low Esher, Sur­rey, for those com­mut­ing into Lon­don, and Soli­hull, for those trav­el­ling daily into Birm­ing­ham.

The study comes as rail fares con­tinue to rise around the UK. This new year they in­creased by an av­er­age of 2.3%, with cam­paign­ers warn­ing peo­ple are be­ing priced off trains and on to the road.

House prices con­tin­ued to climb last year, sup­ported by a mis­match in the sup­ply and de­mand of homes.

Prop­erty val­ues in­creased at their fastest rate for a year in De­cem­ber, adding nearly £1,000 to the cost of the typ­i­cal home, ac­cord­ing to the most re­cent fig­ures from Na­tion­wide. It of­fers a glim­mer of hope for home­own­ers. price of their

Lawrence Hall, of Zoopla, said: “Ris­ing rail fares will have been un­wel­come news for com­muters head­ing back to work this year, but our fig­ures may at least soften the blow slightly for those al­ready liv­ing in the sub­ur­ban lo­ca­tions at the top end of the ta­ble.”

In other com­muter ar­eas around Cardiff, it would take just un­der 20 days to pay off the £516 an­nual travel card for those in Radyr with the av­er­age house price now £274,797 – a rise of 3.65%.

For home­own­ers in Barry, it would take 23 days to cover the £712 yearly travel card, with the av­er­age house price at £183,440, rep­re­sent­ing a 6.58% rise on last year.

In Ca­dox­ton, the study worked out it would take sig­nif­i­cantly longer – about 59 days – to pay off the trav­el­ling costs of £712. That’s be­cause the av­er­age price rise was 3% for prop­er­ties which typ­i­cally cost £149,590.

And it would take 65 days for those in Aber­dare to pay off their £1,104 an­nual travel cost af­ter house prices rose 5.8% last year, and now stand at an av­er­age of £112,446.

Prop­er­ties in Lon­don’s com­muter towns fared best across the UK as a whole.

The av­er­age prop­erty in Esher for com­mut­ing to Lon­don in­creased in value by £256 a day, to £1,109,098 (up 9.25%) over the past year, mean­ing that – if val­ues rise at a sim­i­lar rate over the com­ing 12 months – the grow­ing value of their prop­erty could cover the cost of an an­nual £2,080 com­mute to Lon­don in just over eight days.

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