The UK’s commuter towns are hot spots for property investors. These areas have lower housing prices than nearby cities, making the suburbs more accessible, while still benefiting from the widespread demand for urban living. It’s important to note, however, that not all travel cities will be worth your money.
To separate the smart investments from the poor prospects, here are 6 ways to spot the potential in UK commuter towns.
1. Prioritize the Best Shipping Links
Traveler cities are highly valued for their city links. Look for cities with direct services and access to desired stations or destinations.
London’s main towns often have a direct service from one of the main train stations (such as Victoria or St Pancras). Reading, for example, has a direct 25-minute service to London Paddington, and is served by the Elizabeth Line. A little further out is Peterborough, which has a 50 minute train ride to London King’s Cross.
Frequency is as important as speed here. Check how often trains run during peak hours and whether there are reliable off-peak and weekend services. A 30-minute journey every 10 minutes is often more convenient than a 20-minute train once an hour.
2. Check for Changes in Local Products
A smart property investment it should be in a growth environment. To separate cities with already high ridership from those that are on the rise, do some research on the area’s yield.
Rental yields measure the annual return on investment in rental properties, taking into account annual rental income and the initial value of the property.
By using rental yield data to check how the potential profits have changed over time, you can look at how prices are increasing gradually. If you see yields moving or starting to fall, it may be a sign of a saturated market.
To dig a little deeper into the data, combine rental income with other data, such as population growth and employment trends. This will give you a clear picture of how sustainable the growth of the commuter town is and whether the area can keep up with current prices.
3. Compare Affordability to Cities
The biggest advantage of commuter towns is affordability. People in particular prefer to live near the city rather than in it so that they can access lower property prices and larger homes.
It makes sense then that affordability is a key factor in the best travel cities.
Yes, there is a good balance here. Low prices may make the area more accessible to commuters, but may also indicate low demand. High prices, on the other hand, are a good indicator of desirability, but they can also narrow your pool of potential home buyers.
Let’s say, for example, you’re thinking of commuter towns in London. Purfleet-on-Thames is a strong choice for affordability, with a house price of £248,400 – well below the city average over £650,000. It’s also a quick 30-minute commute, making it convenient for commuters.
Go a little further out, and you’ll find areas where housing prices are starting to rise. Chatham has an average house price of £280,000, but is 45 minutes from London’s mainline stations. Although more expensive, its slightly longer commute is offset by increased demand for those looking for more space and a beautiful, historic city.
For affordable boarding places, check out boarding towns elsewhere in the UK. Bradford is a prime choice for Leeds with an average house price of just over £155,000 and a quick 17 minute commute.
Up north, Edinburgh is surrounded by less expensive commuter towns, including Wishaw (£111,000), Airdrie (£118,000), and Coatbridge (£120,000).
4. Look for Refresh Areas
If you’re looking for the best cities for commuters in London and beyond, look out for areas of regeneration and development. This includes new shopping centers and development of residential buildingsfor example, and the development of public transport.
Renovations often reflect confidence and long-term investment in the area. Development can attract tenants, too, and increase the overall desirability of local markets. Early investors in these cities have the opportunity to buy low and see a high return on investment (ROI), making them financial gold mines.
For more information about developments in the city, check the local council’s planning websites. Before jumping the gun, make sure any renovation projects are fully funded and ongoing; rarely does change stop before it starts.
5. Assess Economic Strengths
Commuter cities undoubtedly benefit from their proximity to major cities, but smart investment should not be entirely dependent on location. Cities with their growing economies tend to be resilient, especially as travel patterns change again 40% of UK workers works at home.
Look for places that show opportunities within their walls. A wide range of diverse employers is always a green flag, as are areas with excellent access to education and health care. Strong business communities and busy, thriving highways are great assets, giving your commuter city plenty to brag about.
6. Analyze Demographics
Whether you’re looking for a site to remodel or lease, you need to know your target audience. Once you’ve found small towns that are worth your time, check with the locals to make sure the right investment corresponds to the need.
For example, if you’re looking for a place on a budget, like a studio apartment, a city popular with families might not be your best bet. A tourist town close to the city, however, and with many educated and professional people, puts you at a good advantage.
To measure employer demand, see:
- Average length of stay for different types of properties on the rental market
- A mix of building types available
- Availability of schools and facilities
- Population growth by age group
You can also talk to real estate agents in the area to learn more about properties that are snapped up quickly at the highest prices.
Final thoughts
Finding a thriving commuter town in the UK is about more than being close to the city. Take your time to uncover a property’s hidden strengths before you move in, and ensure you’re making a smart move for your property portfolio.
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