Hike in rail fares and rise house prices will put London residents off moving to Cambridge, warns estate agent
01-07-2014
Written by ADAM LUKE
The increasing hikes to rail season ticket prices for Cambridge commuters is putting Londoners off moving to the city, according to an independent estate agent.
On Friday, the News reported that the annual cost of travel for city dwellers has now passed the £4,500 mark for the first time. It will cost an extra £136 a year from Cambridge to London’s King’s Cross.
And now, new research from haart, which analysed property prices around key regional UK commuter hubs to the capital, has revealed that on average about half of £10,799 mortgage savings achieved through moving to the regions are wiped out by the cost of a season ticket.
But in Cambridge the situation is worse.
Those moving to the city and living in an average priced property while commuting into London are out of pocket by £430 due to average property prices surpassing the £350,000 mark and season tickets continuing to soar.
The most economically prudent regions to move to are Southend and Southampton where commuters save about £8,600 a year, even with a season ticket included.
Paul Smith, haart chief executive, said: “Moving regionally may not be as beneficial as you think.
“For a couple who both work regionally the annual cost of travelling in to London could mount up to £10,000, which may ultimately discourage people from moving out.”
He added: “Certain towns and cities are already feeling the ‘London effect’, particularly the traditional university towns, so increasing property prices and higher mortgage repayments are insignificant and fail to negate savings through commuting.”
But Mark Wood, director at Bradshaws estate agent which has branches in Histon, Cambridge and Sawston disagreed.
He said: “The main reason we come across for people moving here from London is for a better standard of living, not necessarily purely for financial reasons. They can live in a much larger home here than they could in London.”