Evidence has been found that the ongoing disruption caused by Southern Rail strikes has led to a slowdown in rental growth in the affected areas
New research released by buy-to-let lender Landbay has revealed that rent growth slowed in five out of the six key areas affected by the strikes.
Surrey, West Sussex, East Sussex, Milton Keynes and Kent have all experienced slower growth.
These areas contain stations in the Southern Rail network, including Guildford, Dorking and Hastings.
Rental price growth in East Sussex fell from 0.26% in the first half of 2016 to 0.15% in the second half of last year, while in West Sussex it slowed from 0.24% to 0.19%.
Kent (0.27% to 0.19%) and Milton Keynes (0.34% to 0.17%) also experienced slower growth, while rental growth in Surrey fell from 0.12% in H1 to -0.02% in H2.
Brighton and Hove was the only area surveyed in the South East that experienced a rental growth rise, from 0.24% in H1 to 0.26% in H2.
The average rental price growth in the South East slowed to 0.13% in the period of July to December from 0.21% in January to June.
John Goodall, CEO and co-founder of Landbay, said: “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.
“While the strikes may have caused headaches for commuters across the network, the dwindling rents are a small positive for tenants.
“Our recent report has already highlighted the positive impact on infrastructural developments like HS2 and Crossrail on the rental market, however, this is pushing prices in the opposite direction.
“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.”
See Landbay’s Rental Index – powered by MIAC – below.
England
|
Region |
Average rental growth H1 |
Average rental growth H2 |
|
South East |
0.21% |
0.13% |
|
East England |
0.27% |
0.23% |
|
East Midlands |
0.22% |
0.23% |
|
London |
0.04% |
-0.10% |
|
North East |
-0.01% |
-0.01% |
|
North West |
0.18% |
0.17% |
|
South West |
0.21% |
0.16% |
|
West Midlands |
0.21% |
0.21% |
|
Yorkshire and Humberside |
0.14% |
0.14% |
South East
|
Area |
Average rental growth H1 |
Average rental growth H2 |
|
East Sussex |
0.26% |
0.15% |
|
Kent |
0.27% |
0.19% |
|
Brighton and Hove |
0.24% |
0.26% |
|
Milton Keynes |
0.34% |
0.17% |
|
Surrey |
0.12% |
-0.02% |
|
West Sussex |
0.24% |
0.19% 
|
