House prices in London are becoming so expensive that surrounding areas should start feeling a boost in their housing market as people decide to buy outside the capital and commute to save money.  According to a recent study shared by The Guardian, moving to one of the 21 towns that are within a reasonable hour’s commute to London could save £260,000 on a comparable property and that is far more in savings than the cost of the commute.  The most affordable commuter town was listed as Wellingbourough in Northhamptonshire.

London house prices have helped the average UK house price throughout the recession as the housing market there realized increases steadily.  Currently the average house price according to Nationwide has broken the £400,000 barrier and stands at £400,404.  This is 30% higher than the peak in 2007. 

Despite the slower advancement of house prices in other areas of the UK, such high growth could cause the Bank of England to seek ways to slow down the growth.  One such barrier could be an increase in the standard base interest rate.  However, some economists believe there will be a natural slow down as buyers begin to say “No” to high prices and instead seek other options which for London could mean a house outside the area with a commute that saves money. 

Perhaps some that have bought within London will see this as an opportunity to realize a good return on their investment and will seek to sell and decide to commute themselves.  For many warn that the level of house price growth for London is unsustainable and a correction is inevitable which could find those paying top amounts today losing equity later on.