I’m fed up with London rents

I’ve had sufficient of paying London hire and need to attempt to dwell someplace cheaper, so I can get monetary savings for a deposit to purchase my own residence.

It is unlikely that I will purchase in London, so I want to check out one other location earlier than I hopefully purchase there.

I would prefer to dwell by the ocean and have heard good issues about Leigh on Sea, in Essex, and Margate, in Kent, and that they’re each up-and-coming.

My girlfriend and I at the moment pay £2,200 a month for a two-bedroom flat in Finsbury Park in London, and journey into central London for work.

We work in London and each should be within the workplace three days every week, so must commute by practice. Would we really save any cash by shifting? What are the issues we have to take into account when working it out?

Ed Magnus, of That is Cash, replies: It is wise to be asking this query, notably if you’re having to shell out a lot on hire every month.

Rents have been rising quick. Over the previous three years alone, the common UK rental property outdoors of London has risen by 27 per cent from £853 a month to £1,084 a month, based on the HomeLet rental index.

In London alone, the common hire has risen by 37 per cent throughout that point, rising from £1,580 a month in April 2021 to £2,167 a month as of April this 12 months.

Rising rental prices is not going to solely be placing added stress on many individuals’s day-to-day budgets, however inhibiting their capacity to save lots of in direction of shopping for a house.

It is unsurprising that some persons are contemplating shifting to cheaper areas away from the capital. 

However whereas the price of London hire is excessive, commuting by practice will also be very costly – particularly if you should be at work by 9 o’clock. 

Which means that any price you save in hire by shifting to a commuter city like Margate or Leigh on Sea, must be weighed up in opposition to the price of journey.

However it could even be the case that your way of life can be cheaper in one other city. London is an costly metropolis to dwell in, and the price of assembly up with pals and going to occasions can mount up. 

You could possibly discover you’ll be able to in the reduction of on sure prices which will have been necessary in London, however are not doable elsewhere. 

Will shifting to Margate get monetary savings? 

For anybody working in London, however wishing to dwell by the ocean, Margate could possibly be a great choice. 

The Kentish seaside city has change into widespread with artistic sorts and is now stuffed with buzzing cafes, retro retailers, artwork galleries, eating places and bars, to not point out the ocean and its seashores.

The common two-bed in Margate is on the market for £952 a month, based on Rightmove. That is lower than half what our reader is paying in London.

Nevertheless, you may need to be ready for a moderately prolonged commute. Relying on what practice you hop on, you could possibly be travelling for greater than two hours. 

And the tickets don’t come low cost. The anytime day return prices £95.20, or there’s a cheaper £80.90 choice however just for a number of choose journeys.

In the event you go for the £95.20 ticket thrice every week that can set you again £285.60 every. Over the course of a month that could possibly be costing you £1,142 every, amounting to £2,284 a month in complete.

Nevertheless, in case you are 30 years of age or below you ought to be eligible for a teenager’s railcard. Not like many different sorts of railcard, these can be utilized at peak occasions. 

On this case, an anytime return between Margate and London needs to be not more than £62.80, which might slash the month-to-month prices right down to £753, or £1,506 mixed. 

On that foundation, you’ll lose a mixed £262 every month by shifting to Margate, in comparison with your hire in London. 

Examine season tickets

In case you are solely working three days every week within the workplace, then there’s typically a great probability a season ticket might not show to be cost-effective.

However within the case of Margate, you’ll really be much better off going for the month-to-month season ticket. 

It prices £658.60 a month every (£1,317.20 mixed), however you will not be eligible for any additional reductions even with a railcard. 

Even so, regardless of the financial savings made on hire in Margate, you’ll nonetheless be worse off shifting there, because of the excessive commuting prices.

In actual fact, staying in Finsbury Park in your £2,200 flat will prevent virtually £69.20 every month. 

The above calculations haven’t factored in tube journey round London, however we are able to solely assume you may must pay whether or not you reside in London or not – as you will have to get from the practice station (Victoria, London Bridge or St Pancras) to your workplace. 

Will shifting to Leigh on Sea get monetary savings? 

Leigh on Sea in Essex might show to be a extra handy various to Margate, because it’s nearer to the capital with solely a 45 minute practice into London Fenchurch Avenue.

The common two mattress in Leigh On Sea prices £1,652 a month to hire, based on Rightmove. 

Not dissimilar to Margate, Leigh is now house to a bustling neighborhood of designers and artists. There’s a seaside, quite a few pubs and plenty of recent seafood.

An Anytime day return from Leigh On Sea to London prices £22.40. Tube journey will not be included.

This might imply that over the course of three days, you’ll pay £67.20 every week. Every month that would imply you are paying £268.80 in your commute. Doubled between the 2 of you that would equate to £537.60.

Factoring in your present hire in Finsbury Park in London and the added practice fare prices, you could possibly save your self simply £10 a month by shifting to the common two-bed in Leigh on Sea. 

With a railcard, your collective month-to-month prices on practice journey would equate to a collective £354 a month, that means on this situation you’ll be saving £200 a month by shifting to Leigh on Sea.

Since you’re each working within the workplace three days every week, there can be no level shopping for a season ticket as it really works out dearer from Leigh on Sea – in contrast to in Margate.

But when both of you have been to start out going into the workplace 5 days every week, the month-to-month season ticket will set you again £411.30 every, not together with onward tube journey.

What different areas might they take into account?

Finally, lots will come right down to the kind of property you’re after. If yow will discover a much bigger and higher property in considered one of these coastal cities for half the value of the equal flat in London, then it could deem it price it, no matter whether or not you make a saving or not.

Equally, if saving is extra necessary than the kind of flat you reside in, then you could resolve that shifting to a smaller house or a less expensive space in London can be a worthwhile momentary sacrifice.

In case your coronary heart is ready on dwelling by the ocean then there are many coastal cities inside commutable distance of London that you could possibly take into account, together with Brighton, Southend on Sea, Hastings and Worthing.

The common rental property in Brighton is on the market for £1,587 a month based on Zoopla and is simply over one hour by practice to and from London.

Southend on Sea calls for rents of £1,119 on common and journeys from Southend Central into London take virtually 1.30 hours.

Rental properties in Worthing in West Sussex can be found for £1,153 a month on common. Practice journeys from the seaside city into London take near 1 hour 30, albeit they’ll take longer.

Rental properties in Hastings in East Sussex can be found at £1,021 on common. Journeys into London can take something between one and half hours and over two hours.  

Richard Donnell, govt director at Zoopla, says: ‘When seeking to transfer out and search higher worth, it will depend on hire ranges which might be accessible to coach stations for commuting to work. 

‘Rents have elevated quick lately as renters have sought to get higher worth for cash, so the potential financial savings might not be as nice as you could hope when factoring in journey and different dwelling prices. 

‘It is necessary to be clear on what number of days you will have to commute. 

‘There may be additionally a want to get a bit extra home than you’ll have now, which is able to scale back how a lot it can save you. 

‘Attempt to analysis the market and get the stability between someplace good to hire, which will not be so costly which you could’t save for the deposit.’