Rail strikes impacting on Southern rental growth

The rail strikes that have been infuriating commuters on Southern Rail have now started to impact on rental price growth in the South East, according to the most recent Landbay rental index.

This Index reveals that rental growth has slowed in five of the six main areas affected by the strikes.

Dwindling Demand

Landbay suggests that landlords in these areas will have had to limit rent increases or possibly cut rents during the second half of last year, as demand dwindled.

The strikes are suggested to have impacted on hundreds of thousands of passengers. Figures from the report show in Surrey-home to Dorking and Guildford-average rental growth was -0.02% in the final six months of 2016. This was down from 0.12% in the first half of the year.

In addition, rental growth slowed in East Sussex (0.26% to 0.15%), West Sussex (0.24% to 0.19%) and Kent (0.27% to 0.19%) in the same period.

Brighton and Hove was the only region to record positive growth in the second half of 2016, with growth increasing by 0.24% to 0.26%.

Rail strikes impacting on Southern rental growth

Rail strikes impacting on Southern rental growth

Average Rents

On average, rents across the whole of the South East rose by 0.21% in the six months from January to June, but slowed to 0.13% from July to December. As such, only the North East and London saw slower rental growth in the last five years.

John Goodall, chief executive and co-founder of Landbay, noted: ‘Rental prices along the Southern network haven’t plummeted just yet, but these figures do suggest that it is beginning to have an impact on local property markets.’[1]

‘While the strikes may have caused headaches for commuters across the network, the dwindling rents are a small positive for tenants. Whether the lower rental prices are worth the delay is a whole other story,’ he continued.[1]

Mr Goodall went on to say, ‘with disruption expected to continue, people will begin to re-evaluate the criteria when it comes to renting-whether that be distance from London or reliable transport links.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/rail-strikes-could-be-responsible-for-rent-dips-figures-show

 

©2017 Just Landlords

Log in with your credentials

Forgot your details?