First-time buyers 'may benefit from commuting'

First-time buyers in London may find the best value in the Dulwich area, while commuting for the country could also make sound financial sense, according to new research.

A study by Hamptons International found that a typical one-bedroom property starts at £235,000 in the Dulwich area.

Furthermore , with the average price of a three-bedroom flat in London standing at around £815,000, a buyer could add less than £200,000 and get a five-bedroom country house in several south-east commuter towns.

Outside of London, first-time buyers are advised to consider places such as Brackley, Marlborough, Fleet, Banbury and Stroud.

"In the context of the current market, this research provides an optimistic signal for long-term buy-to-let investors hungry to build a property portfolio. Despite the increase in the cost of capital, rental levels continue to escalate above house price inflation, pushing yields higher," says Rob Bruce, research manager at Hamptons International.

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