By Daniel Hunter

London workers could be better off by as much as £300,000 by living just an hour outside of the capital, even after travel costs, according to Lloyds Bank.

The study into housing and travel costs for London workers found that house prices are roughly 60% cheaper an hour's train ride outside of London. It means that the cost of a season rail ticket would still leave workers better off than living in the city.

However, Andrew Mason, mortgages director at Lloyds Bank, acknowledged that deciding whether or not to commute was "not simply a trade-off between financial costs and journey times".

But the research did find that those who do commute have more money to spend when they get home as a result of higher London wages and lower mortgages.

Labour's Mayor of London candidate Tessa Jowell says she wants to address London's "housing crisis", pointing to her own research which suggests it would be £403 a month cheaper to rent a flat in Madrid and commute to London every day, than to rent a flat in North London.

And those high rent costs are almost impossible to escape, with house prices in London's central working areas at an average £722,000.

Homes in towns an hour's train ride away from London, like Crawley and Colchester, are priced at an average £272,000. The cost of rail travel for the journey would cost just under £5,000. Based on current prices, it is estimated that 30 years worth of commuting would cost £150,000, compared with an overall cost of £450,000 for those living in London.