The only way is Essex for savvy home buyers
The latest London average asking prices for houses* reveals first time buyers are paying £483,122 to get their foot on the ladder, whereas second steppers are spending £689,356 and the top of the ladder are having to find £1,514,173 for their dream home. Compare these prices to properties just a short commute away and it’s easy to understand why the new hot spots for property are gaining pace in Greater London and the A12 corridor in Essex.
Beresfords has conducted research amongst its branches and has found that families can save as much as £17,817 for every mile travelled up the A12 in Essex. For example: a four-bed detached property in Upminster or Shenfield would market for £900,000 compared to just £350,000 in Colchester – making a saving of £550,000.
First time buyers can also bag a bargain saving as much as £7,051 for every mile travelled up the A12 in Essex. For example: a first time buyer property in Gidea Park will market for £450,000, whereas in Colchester a similar property would be just £175,000 – making a saving of £275,000 for just a 39 mile drive.
Terry Holmes, Director, Beresfords, is not surprised by these statistics. He says: “Of course it’s not a new phenomenon to find house prices cheaper outside of the capital, but the difference in prices between London and outlying towns has become extraordinary. In Essex there’s a definite ripple effect down the A12 and it’s become a real decision maker for house buyers - ‘Do I go for a two-three bed house close to friends and family with a 30 minute commute into London, or opt for a four bed detached for the same price with a 45 minute commute.’”
FIRST TIME BUYER/1-BED PROPERTIES IN ESSEX/A12 CORRIDOR
1 Bed Apartments Town First Time Buyers
£230,000 Gidea Park £450,000
£300,000 Shenfield £525,000
£170,000 Ingatestone £300,000
£170,000 Chelmsford £300,000
£110,000 Colchester £175,000
FAMILY PROPERTIES IN ESSEX/A12 CORRIDOR
4 Bed Detached Town 2 bed bungalow
£800,000 Gidea Park £500,000
£900,000 Shenfield £525,000
£950,000 Ingatestone £475,000
£500,000 Chelmsford £350,000
£350,000 Colchester £265,000
The research also revealed that first time buyers can save over £30,000 on their first home by simply hopping on a train and taking a short commute to an area in Greater London, such as Gidea Park. Whereas families can save an astonishing £714,173 for buying a four bed detached home out of the central London zone in Gidea Park.
The research also uncovered further hotspots of activity with Shenfield – just a 20 minute commute from London Liverpool Street – offering some of the highest house prices in the county. Thanks to its much-anticipated links with Crossrail the area has been a buzz of activity for the past few years and the nearby suburb of Hutton and village of Fryerning have also kept pace.
The research also identified the UK’s newest city, Chelmsford, as a money saving option. Chelmsford offers first time buyers a 37.9% saving on average property prices in London and 6.9% compared to property prices in Greater London (Gidea Park). However families save on average 67% on London prices in Chelmsford and 47% compared to Greater London (Gidea Park). Chelmsford, just a 30 minute commute to London Liverpool Street Station, will also benefit from a new rail link to the popular Beaulieu Park development and a new Bond Street shopping centre, attracting a John Lewis, 20 new retail outlets, riverside restaurants and a cinema in the city centre.
For further information please contact one of the Beresfords branches.
*The Rightmove House Price Index (May 2016)