PEOPLE who commute by train to work in Edinburgh are better off than their colleagues who live in the capital, new research shows.

While the amount of money saved by travelling to the capital can be huge, the Bank of Scotland study also found that rail travellers to Glasgow can save thousands of pounds each year by getting the train to work from outside the city.

The figures show residents from Dunblane, Glasgow and Motherwell who take a 60-minute train to work in Edinburgh spend around £2700 a year on fares, but benefit from house prices which are, on average, £75,000 less than if they lived in the capital.

Meanwhile, the average house prices in places 30 minutes away from the capital, such as Dunbar, Falkirk and Livingston, are about £67,500 lower than in the city centre. This compares with the average £1500 annual cost of a half-hour rail commute to the capital.

People who work in Scotland's biggest city can also save money by not living there.

Commuters who live in places which are about a 30-minute rail journey from Glasgow, including Stirling, Greenock and Motherwell, pay an average of £6000 less for their homes than if they lived in the city. The average cost of an annual rail pass from these areas is about £1600.

But those travelling for longer into Scotland's largest city may see the cost of travel outstrip savings made on their homes.

Those commuting from towns and cities an hour away from Glasgow, such as Edinburgh, Ayr and Perth, have an average house price (£185,000) that is £58,000 higher than Glasgow.

Coupled with the price of an annual rail pass costing close to £3200, many of these commuters may be financially better off living closer to their place of work, according to the research.

But in the case of Aberdeen, Bank of Scotland said commuters often pay more for a house than they would in the city.

With an average house price in Aberdeen close to £172,000, commuters with a rail journey of about 15 minutes from Stonehaven pay, on average, one-third (£49,000) more for their homes, combined with the annual rail cost of £1150.

In Inverurie and Montrose, which are both about 30 minutes from Aberdeen, houses are an average of 15% higher than in the city, and rail passes cost between £1300 and £2700 a year.

Overall, Bank of Scotland said the difference in property prices may be outweighed by travel costs if people commute for a number of years. However, fares can vary and there is an increase of more than 4% due in January.

Nitesh Patel, housing economist at Bank of Scotland, said: "It is generally true that, the further you commute, the larger the financial savings made in terms of lower house prices.

"A major consideration for commuting to leading cities, such as these, is that the typically higher income that can be earned tends to go much further in surrounding towns."

Edinburgh Chamber of Commerce said the city commands a premium in terms of attracting workers.

A spokesman said: "As Scotland's capital, Edinburgh balances its commercial business with being a great tourist destination and it is a bonus for businesses based in Edinburgh they are able to attract talented, skilled workers from such a wide area."