Wellingborough was rated the most affordable town within an hour of the capital, followed by Kettering, Peterborough and Chatham according to a report by Lloyds Bank. It highlights how much house buyers who are prepared to commute in to the capital can save. It states priced-out Londoners should head to Wellingborough in Northamptonshire to afford a home, according to a study of commuter towns by Lloyds Bank. It named Wellingborough as the most affordable town within an hour’s commute of the capital, with the average home selling for £160,245 compared to £722,000 in central London. On average, London workers happy to commute for an hour each way will save £450,000 on a property purchase, said Lloyds, although they face annual season ticket costs of nearly £5,000.
After Wellingborough, Lloyds named Kettering, Peterborough, Chatham, Luton, Basildon and Swindon as the most affordable commuter towns, where average prices were all below £200,000.
At Osprey we have seen a rise in the number of London buyers both for home ownership and for investment purposes. Not surprising when a one bed flat in London can be sold and a large four bed detached property can be bought in Wellingborough for the same money. There are a number of new build properties within easy reach of Wellingborough town centre and importantly the train station. It takes 50 minutes by train into St Pancras and a new non-stop train service is due to start next year making it even faster.
The attractions in terms of investment are threefold; firstly a lower absolute price meaning a smaller deposit for purchase. Secondly the rental yield on property in Wellingborough, Kettering and Peterborough are proportionately greater than in London and thirdly the capital appreciation potential of these areas we believe will be greater than in London over the next 5 years. All this adds up to a greater total return in these areas.