Night Tube service set to propel rental growth in London
With selected Tube stations set to remain open for 24 hours on weekends in London, it is predicted that rents around such stations are expected to increase.
With rents falling all across the UK, including London where rents are down by 0.5% compared to the same period last year, this finding comes as a relief. It is anticipated that the demand for rental accommodation with easy access to tube stations will rise.
A survey conducted by the Association of Residential Letting Agents (ARLA) revealed that one in four members expect the rents to increase once London’s new Night Tube service commences (August 19). The Night Tube service will start on the Central and Victoria lines and will eventually be extended to include other lines. Currently, commuters living in Epping and Walthamstow take night buses during weekends to reach home. They will now be able to use the weekend Night Tube service on these two lines.
Property owners are geared up to increase the rents by showcasing the Night Tube service. Connectivity and transport links are integral to fluctuation of property prices in London. A property which is well-connected by Tube and roads always commands a premium price.
This could set another precedent in the London property market, as not all segments of working professionals can afford to pay such high rents. It has been noticed that working professionals, especially couples, are moving out of central London to other locations where rents are more affordable.
International investors owning properties along Night Tube service stations stand to gain from the rent hike in terms of income. Such property owners could even consider short lets, as returns are even higher in this category. The full impact of the Night Tube Service on the property market in London will be analysed once the service has been active for some time.
Photo Credit: Rachel Blundey