Rental price growth ‘expected to accelerate this year’

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UK rents grew by 0.56% in 2017, led by gains in London commuter hotspots, according to the latest rental price index by Landbay.

The data, which is powered by MIAC, reveals that commuters in almost half of London’s most popular commuter towns – 17 out of 40 routes monitored – face a greater overall financial burden from growing rents than from train fares, with the average train season ticket prices increasing by an average of 3.6% across the UK last week.

Average rents in these 17 towns rose by an average of £183 (1.68%) in the year to December 2017, while rail fares have jumped by an average of £142 (3.6%).

Combining annual rental and rail fare increases, commuters in these regions are facing a total additional outlay of £325 a year.

Cambridge and Brighton have seen the greatest monetary rise in rents, £228 (2.06%) and £202 (1.58%) respectively, as rail fares in both regions rose by £172 and £163.

A further six town in London’s commuter belt saw rents increase by in excess of 1% – more than double the UK average. This included Luton, Hastings, Basingstoke, Ashford, Canterbury and Horsham, which have seen rents rise by an average of £146, almost as much as the average £166 increase in rail fares.

However, not all buy-to-let hotspots in the South East have seen rents increase, with average rents in Guildford, Reigate and Woking falling during 2017, by an average of £127, or 0.73%.

Commuters living in Guildford, Reigate and Woking, which all saw rents fall by £127 (-0.73%) in 2017, will be saving enough to offset the rail fare hikes of £126, £99 and £113 respectively.

According to Landbay, there are now signs that demand for low-rent accommodation by long-distance commuters to London is pushing up rents in many commuter towns. This is in stark contrast to London, where they fell by -0.8% in 2017.

John Goodall, CEO and founder of Landbay, said: “Commuters have seen their season ticket prices rise by more than £100 this week, the vast majority of whom are also looking at a double whammy of rent rises driven by greater tenant demand. At a time when rents in the capital are falling, some may even be considering a move into London, to be done with the train commute altogether.

“With inflation riding so high, rail fare growth shows no sign of slowing, and without a radical house building plan for purchase as well as purpose-built rental properties, rental price growth is expected to accelerate this year as well.”

UK Rental Index

DECEMBER 17

YoY %

MoM %

Av. £

UK

0.56%

0.00%

1,196

England

0.50%

0.01%

1,227

Scotland

1.18%

-0.10%

    729

Wales

1.36%

-0.06%

    643

Northern Ireland

0.75%

-0.12%

    563

London                       

-0.80%

-0.06%

1,872

UK without London

1.29%

0.03%

    759

UK Rental Index by number of beds

One bed

Two bed

Three bed

YoY

%

MoM

%

Av. £

YoY

%

MoM

%

Av. £

YoY

%

MoM

%

Av. £

UK

0.42%

-0.01%

1,016

0.49%

-0.01%

  1,157

0.85%

0.01%

1,330

England

0.35%

0.00%

1,049

0.44%

0.00%

  1,192

0.78%

0.02%

1,351

Scotland

1.30%

-0.16%

    551

0.94%

-0.10%

     692

1.77%

-0.06%

1,130

Wales

1.23%

-0.13%

    546

1.16%

-0.01%

     658

1.43%

0.02%

    617

Northern Ireland

1.32%

0.00%

    443

-0.06%

-0.60%

     540

1.60%

0.24%

    581

London

-0.62%

-0.05%

1,448

-0.72%

-0.03%

  1,918

-0.97%

-0.11%

2,671

UK without London

1.26%

0.03%

    599

1.10%

0.00%

     714

1.47%

0.06%

    827

Rental Index and rail fare increases by commuter hotspot

Season Ticket Prices

Average Rents

 

Station commuted from into London terminals

2017
(£)

2018
(£)

2017/18

Geography

2017
(£)

2018
(£)

2017/18

1

Brighton

   4,536

   4,699

£163

Brighton and Hove

   12,834

   13,036

1.58%

£202

2

Luton

   4,032

   4,177

£145

Luton

     9,271

     9,390

1.28%

£119

3

Milton Keynes

   5,028

   5,209

£181

Milton Keynes

   11,121

   11,187

0.60%

£67

4

Portsmouth stations

   5,048

   5,230

£182

Portsmouth

   10,276

   10,367

0.88%

£91

5

Reading

   4,308

   4,463

£155

Reading

   12,207

   12,211

0.03%

£4

6

Slough

   2,540

   2,631

£91

Slough

   11,537

   11,533

-0.04%

-£4

7

Southampton Central

   5,504

   5,702

£198

Southampton

     9,093

     9,161

0.75%

£68

8

Southend Central

   3,408

   3,531

£123

Southend on Sea

     8,881

     9,071

2.15%

£191

9

Bracknell

   4,308

   4,463

£155

Bracknell Forest

   11,297

   11,302

0.05%

£5

10

Aylesbury

   3,920

   4,061

£141

Buckinghamshire

   14,028

   13,985

-0.31%

-£43

11

High Wycombe

   3,436

   3,560

£124

Buckinghamshire

   14,028

   13,985

-0.31%

-£43

12

Cambridge

   4,780

   4,952

£172

Cambridgeshire

   11,048

   11,276

2.06%

£228

13

Eastbourne

   4,668

   4,836

£168

East Sussex

     9,201

     9,373

1.86%

£172

14

Hastings

   4,980

   5,159

£179

East Sussex

     9,201

     9,373

1.86%

£172

15

Braintree

   4,344

   4,500

£156

Essex

   11,267

   11,460

1.71%

£193

16

Brentwood

   2,580

   2,673

£93

Essex

   11,267

   11,460

1.71%

£193

17

Chelmsford

   3,832

   3,970

£138

Essex

   11,267

   11,460

1.71%

£193

18

Colchester

   4,928

   5,105

£177

Essex

   11,267

   11,460

1.71%

£193

19

Grays (Essex)

   2,296

   2,379

£83

Essex

   11,267

   11,460

1.71%

£193

20

Harlow Town

   3,496

   3,622

£126

Essex

   11,267

   11,460

1.71%

£193

21

Witham

   4,276

   4,430

£154

Essex

   11,267

   11,460

1.71%

£193

22

Basingstoke

   4,308

   4,463

£155

Hampshire

   11,246

   11,360

1.02%

£114

23

Bishops Stortford

   4,044

   4,190

£146

Hertfordshire

   13,646

   13,739

0.68%

£92

24

Royston

   4,620

   4,786

£166

Hertfordshire

   13,646

   13,739

0.68%

£92

25

St Albans City

   3,380

   3,502

£122

Hertfordshire

   13,646

   13,739

0.68%

£92

26

Stevenage

   3,612

   3,742

£130

Hertfordshire

   13,646

   13,739

0.68%

£92

27

Ashford International

   5,192

   5,379

£187

Kent

   10,823

   10,989

1.54%

£166

28

Canterbury stations

   5,224

   5,412

£188

Kent

   10,823

   10,989

1.54%

£166

29

Gillingham (Kent)

   3,984

   4,127

£143

Kent

   10,823

   10,989

1.54%

£166

30

Maidstone stations

   4,296

   4,451

£155

Kent

   10,823

   10,989

1.54%

£166

31

Sevenoaks

   3,380

   3,502

£122

Kent

   10,823

   10,989

1.54%

£166

32

Tunbridge Wells

   4,484

   4,645

£161

Kent

   10,823

   10,989

1.54%

£166

33

Tonbridge

   4,088

   4,235

£147

Kent

   10,823

   10,989

1.54%

£166

34

Oxford

   4,920

   5,097

£177

Oxfordshire

   14,201

   14,295

0.66%

£94

35

Farnham

   3,888

   4,028

£140

Surrey

   17,294

   17,167

-0.73%

-£127

36

Guildford

   3,496

   3,622

£126

Surrey

   17,294

   17,167

-0.73%

-£127

37

Reigate

   2,748

   2,847

£99

Surrey

   17,294

   17,167

-0.73%

-£127

38

Woking

   3,136

   3,249

£113

Surrey

   17,294

   17,167

-0.73%

-£127

39

Crawley

   3,572

   3,701

£129

West Sussex

   11,143

   11,283

1.26%

£140

40

Horsham

   3,988

   4,132

£144

West Sussex

   11,143

   11,283

1.26%

£140

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Written by: Houseladder