Commuting Time To London Impacts On House Prices
If you are a property developer who is considering building one or more properties to sell within commuting distance from London then you may find some research carried out by Savills of interest. This is because it gives an indication of the impact of how quick it takes someone to travel into work in Central London from their home could have on property prices.
Quite simply, for every minute less that someone spends commuting into Central London from their family home results in them paying, on average, an extra £3,048 for the property. We are sure that you will agree that is a significant figure when you consider that just by having to spend 10 minutes less on a commuter train could put more than £30,000 onto the selling price of that home.
Obviously, amongst other things, location also plays an important factor in deciding how much a property should be offered for sale at. For instance, there are no doubt certain towns in specific counties where the average price of a house is greater than that of another town in a different county that is a similar distance into Central London.
It is no doubt not just in London where the time taken that you have to travel from home to work has a bearing on property prices. For instance, there will be property developers in the Birmingham area who will be aware that average house prices in the likes of up-market locations such as Edgbaston and Harborne are greater than many other properties located a similar travelling time from the centre of Birmingham in other suburbs of the city.
A property developer looking to buy a property to either renovate and sell or who is purchasing a plot of land on which to build one or more properties and then sell them will take into account numerous factors in assessing the viability of the development project. If that property developer is also going to require property development finance then the lender will also wish to be re-assured that the scheme is worthy of their funding support.