Commuters using trains into London are benefiting from house prices that are 60% lower by catching the train rather than living close to their place of work, according to new research by Halifax.

House prices one hour’s travel outside of London are on average £375,000 (60%) lower than in the centre of the city, more than offsetting the average £4,400 annual cost of a sixty minute commute to the capital.

Towns which are an hour’s commute from central London, which includes Peterborough, Manningtree, Swindon and Rochester, equate to an average property price of £245,000: a significant contrast to the average of £620,000 for a property in the centre of the capital. In comparison, the average annual rail cost of £4,400 from these areas in the ‘one hour zone’ is relatively small say Halifax.

Commuters from towns in the ‘half hour zone’, approximately 30 minutes away from central London, including Chelmsford, Milton Keynes, Reading and Sevenoaks, will have to pay an average house price of £275,000: still some £345,000 lower than central London and with a less significant average annual rail pass cost at £3,100.

In contrast commuters into Britain’s second and third largest cities, Birmingham and Manchester, find that house prices are often higher outside the city. The average house price in Birmingham is around £150,000, but several towns around 30 minutes rail journey away – including Walsall, Wolverhampton, Coventry, Burton on Trent and Leamington Spa – command higher average house prices of around £160,000.

Commuters from these towns also have to pay almost £1,500 for an annual rail pass. The same applies to a number of towns that are approximately 30 minutes away from Manchester, such as Warrington, Chorley, Huddersfield and Macclesfield, which also have a higher house price (£175,000) than in Britain’s third largest city.