Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

DLR only London Underground line to withstand rent decline

DLR

The average cost of renting along the DLR was £1,647 per month prior to the pandemic which has since jumped by 4.5% to £1,721 per month

All London Underground lines except the DLR have seen rent values drop as a result of the pandemic and the resulting reduction in demand from London tenants, according to Benham and Reeves.

The research found that prior to the outbreak of COVID-19 in the UK in December 2019, the average rent around an underground station was £2,215 per month.

However, this average monthly cost has since declined 9.4%, to £2,007.

The Circle line has seen the largest drop, with the average cost of renting along the line as a whole dropping 16% to £2,566 per month.

The average cost of renting along the Victoria Line has dropped from £2,227 per month prior to the pandemic to £1,982 – a decline of 11%.

The average cost of renting along the DLR was £1,647 per month prior to the pandemic. This has since jumped by 4.5% to £1,721 per month.

The Hammersmith and City and Jubilee lines have seen the lowest reduction in the average cost of renting at 4.1% and 4.2% respectively, while the Met, Bakerloo, Northern and Piccadilly lines have all seen a 6% drop.

Marc von Grundherr, director of Benham and Reeves, said: The close proximity of a tube station has always been a very sought after feature amongst London’s tenants and this convenience has traditionally commanded a rental price premium as a result.

However, with the pandemic forcing many to work from home, demand and rental values have fallen across London as a whole, with priorities shifting towards larger homes and green space as opposed to public transport availability, he said.

He said: The good news is that this downward trend is starting to reverse and as more of us have returned to the capital, rents are once again starting to climb.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.