{"id":6952,"date":"2021-06-30T17:10:27","date_gmt":"2021-06-30T16:10:27","guid":{"rendered":"https:\/\/www.ipglobal-ltd.com\/?post_type=insights&p=6952"},"modified":"2023-07-13T05:27:41","modified_gmt":"2023-07-13T04:27:41","slug":"why-invest-in-commuter-town-property","status":"publish","type":"insights","link":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/insights\/why-invest-in-commuter-town-property\/","title":{"rendered":"Why Invest in Commuter Town Property?"},"content":{"rendered":"
Why You Should Invest In Commuter Town Property Near London<\/strong><\/h6>\n
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2021 has been a year of uncertainty for many prospective homeowners \u2013 but there is always opportunity in crises. After three successive lockdowns and in the midst of a largely successful vaccination programme, the effects of Covid-19 on the UK property market are beginning to materialise. Now more than ever, renters, homeowners, and buy-to-let property investors are looking further afield than \u201cprime\u201d London property as commuter towns become much more appealing property choices. These effects are so pronounced that while rental prices of\u00a0prime London property fell by 8.6% y-o-y, commuter zone prices rose 5.4% over the same period.<\/a><\/p>\n

At IP Global\u2019s virtual round table event of over 400 registrants, investors echoed this trend: almost a quarter would now consider investing in commuter town property rather than prime city-centre locations. The underlying cause for this is undoubtedly pandemic driven. However, there is significant evidence suggesting that changes are more than just short-term fluctuations and point to a massive shift in lifestyles after lockdown. With London\u2019s economy accounting for almost a quarter of the Nation\u2019s GDP, it\u2019s hardly a surprise that the commuter town property near the Capital is drawing most investor interest.<\/p>\n

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Covid-19 has impacted rental decisions<\/strong><\/h6>\n

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One of the most pronounced impacts of the pandemic has been the way we work.\u00a0By April 2020, 46.6% of workers in the UK transitioned to a work-from-home routine at least temporarily \u2013 86% of which was a direct result of Covid-19<\/a>. Many businesses intend to make these routine changes permanent, and, together with the effects of several lockdowns, the appetite for property in key central business districts is dwindling. Instead, people are starting to look for property in commuter belt towns and nearby areas where rent and property prices are cheaper, and space is abundant.\u00a0Rents in prime areas fell by an average of 1.3% in only the third quarter of 2020, while commuter zone prices instead rose by 1.2%.<\/a><\/p>\n

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Property prices are rising the most in commuter belt areas<\/strong><\/h6>\n

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As the pandemic swept through the UK, a\u00a0\u201chalo effect\u201d\u00a0has emerged with property prices. As growth started to slow in the centre of the UK\u2019s capital city, it steadily increased in most commuter belt towns. According to the Office for National Statistics,\u00a0property prices in London grew by only 4.6%<\/a>\u00a0in the 12-month period ending February 2021. This is significantly lower than the\u00a08.9% annual price growth across England<\/a>, let alone commuter belt areas like\u00a0Broxbourne where prices rose upwards of 11.0%.<\/a>\u00a0Unsurprisingly, commuter towns like\u00a0High Wycombe, Peterborough, St. Albans and many more are gaining a significant level of interest from buy-to-let property investors, renters, and homeowners alike. So why exactly is the commuter zone suddenly getting all this extra attention?<\/p>\n

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Commuter town properties are more spacious<\/strong><\/h6>\n

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Without there being a necessity to live in the prime areas of London, commuter zone properties have piqued the interest of many more. For those who have fully or at least partially transitioned into a work-from-home lifestyle, space both inside and outside the home is essential. Commuter town properties offer just this: the further out from the centre of London you travel, the more space you will get for your money.<\/p>\n

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Commuter belt towns are more affordable<\/strong><\/h6>\n

Another advantage of commuter belt towns is that they are, in general, more affordable than property in London itself. Some of the top commuter towns like Cheshunt, Waltham Cross, and High Wycombe have average property prices of\u00a0\u00a3384,248, \u00a3390,612, and \u00a3331,092<\/a>, respectively.<\/p>\n

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Changes are likely to stay for the foreseeable future<\/strong><\/h6>\n

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There is a substantial argument that the \u201chalo effect\u201d of property prices is here to stay. With routine changes like work-from-home policies proving effective, many of the fears that prevented them from happening long before the pandemic have been dispelled. This is not only echoed in the UK but all over the world where people have had to push the boundaries of technology and find that, actually, most office work-related activities can be performed and measured remotely.<\/p>\n

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As more concrete work-from-home and flexi-work policies are adopted across industries, real estate in commuter zones is becoming an ideal buy-to-let investor\u2019s market with strong rental and capital growth prospects. In fact,\u00a0homes are letting up to 30% faster when compared to pre-Covid-19 times<\/a>, making them a great choice for prospective property investors.<\/p>\n

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Final thoughts\u2026<\/strong><\/h6>\n

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With more and more of London\u2019s workforce exploring the city\u2019s outer reaches for more spacious and affordable property, prices are bound to increase. Data has already begun to evidence this trend, suggesting that those looking to invest in property should get in on this market before prices settle at a new, higher norm.<\/p>\n

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If you have any questions about property investment in the UK, do not hesitate to\u00a0leave us a message<\/a>\u00a0or catch up on the property latest news and insights\u00a0here<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Why You Should Invest In Commuter Town Property Near London 2021 has been a year of uncertainty for many prospective homeowners \u2013 but there is always opportunity in crises. After three successive lockdowns and in the midst of a largely successful vaccination programme, the effects of Covid-19 on the UK property market are beginning to […]<\/p>","protected":false},"featured_media":6954,"parent":0,"menu_order":0,"template":"","location":[144],"insights_type":[127],"series-title":[],"class_list":["post-6952","insights","type-insights","status-publish","has-post-thumbnail","hentry","location-uk","insights_type-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/insights\/6952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/insights"}],"about":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/types\/insights"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/media\/6954"}],"wp:attachment":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=6952"}],"wp:term":[{"taxonomy":"location","embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/location?post=6952"},{"taxonomy":"insights_type","embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/insights_type?post=6952"},{"taxonomy":"series-title","embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/series-title?post=6952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}