In England, a daily train ride may be worth an investor’s time. PropertyWire reports on new analysis by Savills which finds that London-adjacent commuter properties could outperform prime locations in the capital in the five years to 2020.
The price gap between property in London and its commuter belt indicates the potential for significant growth once the ripple effect is restored, it explains. Prime London property prices are 36.8% above their 2007 levels, compared to a 6.6% rise in commuter areas over the same period. Consequently, the prime housing markets in London suburbs, inner commuter, up to 30 minutes train journey to London, and outer commuter up to 60 minutes, locations have the strongest growth prospects over the five years to 2020, at 24.5%, 24% and 23.4% respectively.
The fate of the commuter communities are still tied to the performance of prime London properties. The report notes that a stronger demand for central London locations would need to return before commuter properties will meet their potential price growth. And that is unlikely to happen until buyers acclimatize to the new stamp duty tax. [PropertyWire]