House prices paying off for commuters
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.