Posts with tag: Southern Rail

Rail Strikes Causing Rents to Fall Across the South East

Published On: January 23, 2017 at 11:03 am


Categories: Property News

Tags: ,,,

The Southern Rail strikes that have caused disruption for thousands of commuters have started to affect rent price growth across the South East, according to worrying new research.

Rail Strikes Causing Rents to Fall Across the South East

Rail Strikes Causing Rents to Fall Across the South East

The latest rental index from Landbay shows that price growth has slowed in five of the six key areas affected by the rail strikes.

The buy-to-let lender suggests that landlords in these locations may have had to limit rent rises or even cut prices in the second half of last year in order to meet dwindling levels of demand.

The report follows recent data that indicates the rail strikes have caused house price growth to fall in these areas too: /southern-rail-drama-house-price-slow/

The strikes, which are estimated to have hit hundreds of thousands of passengers, began last August. However, commuters using the Southern Rail service have been experiencing disruptions since July 2016.

Landbay’s figures show that in Surrey, which is home to major Southern Rail stations, Dorking and Guildford – average rent price growth was -0.02% in the second half of 2016, down from +0.12% in the first half of the year.

Rental growth also slowed, albeit less dramatically, in East Sussex (from 0.26% to 0.15%), West Sussex (from 0.24% to 0.19%), Kent (from 0.27% to 0.19%) and Milton Keynes (from 0.34% to 0.17%) during the same period.

The only area affected by the rail strikes to record positive growth in the second half of last year was Brighton and Hove, where rent price growth increased marginally, from 0.24% to 0.26%.

Average rent prices across the whole of the South East rose by 0.21% over the six months from January to June, but slowed to 0.13% in July to December.

Consequently, only the North East and London are now showing slower rental growth over the past five years.

The Chief Executive and co-founder of Landbay, John Goodall, comments: “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. Whether the lower rental prices are worth the delays is a whole other story.”

He adds: “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.”

Goodall says that his firm’s research highlights the influence external factors have on the rental market. He points to previous reports that demonstrate the positive impact of infrastructure improvements on housing.

Have the rail strikes caused you to put your rents down?

Landbay has launched a Rent Check tool, which allows landlords and tenants to compare their own rent prices against properties with the same number of bedrooms in their area.

Southern Rail Drama Causes House Price Growth to Slow Across the Network

Published On: January 10, 2017 at 11:28 am


Categories: Property News

Tags: ,,,

House price growth has slowed across the Southern Rail network when compared to England as a whole, as the firm faces yet more controversy.

A year ago this month, Southern Rail was voted one of the top three worst rail providers by commuters. Since then, it has undoubtedly become the country’s most hated train service, with commuters subject to nine months of chaos.

Southern Rail Drama Causes House Price Growth to Slow Across the Network

Southern Rail Drama Causes House Price Growth to Slow Across the Network

Some employers have even refused applicants using the Southern Rail service, as they fear that workers will too often arrive late. But not only are commuters’ professionals lives being affected, house prices along the network are also suffering.

Using data from Zoopla, online estate agent eMoov has analysed the average price paid and value change of properties around each station on all nine of the Southern Rail network lines. The study assessed the price growth recorded over the last 12 months, as well as the last six, comparing each line to price growth across England during the same periods.

The agent found that house prices across England rose by an average of 7.6% in the past year. For those living across the Southern Rail network, price growth reached just 6.5% in the same timeframe.

More notable, however, is the difference in growth over the past six months.

Across England, house prices rose by an average of 3%. For those unfortunate enough to live within the Southern Rail network, prices increased by just 1.4%.

To make matters worse, living within the network isn’t cheap. With an average value of £447,539, homeowners are paying over the odds for their properties, only for its potential for capital growth to be blighted by the train operator’s service.

The worst affected line is Mainline West, where prices have risen by just 5.4% in the past year and 0.2% in the last six months.

There is hope, however, for those on the Redhill line, as prices have increased by more than the average seen in England both in the last year (7.9%) and past six months (3.1%).

The Founder and CEO of eMoov, Russell Quirk, responds to the findings: “This research really highlights the impact external factors can have on a property’s value in the market. Often, the close proximity of good commuter links into London, in particular, can help increase the asking price of a property.

“In this instance, strike action, poor service, cancelled trains and long delays have had the reverse effect to property prices on the Southern Rail network. It is worrying to think that something outside of your control can not only be detrimental to your work life, but can also spill over into your personal life as well.”

He adds: “Southern Rail staff must forgive UK homeowners for remaining unsympathetic to their cause, when their selfish actions are inadvertently depreciating the most expensive asset they are ever likely to own.”

Has the drama affected any plans you had to buy or sell across the network?