The chancellor’s pledge to create a £690m competition fund for English councils to tackle urban congestion and develop local transport networks, as well as invest in the region of £220m to help improve road networks in regions like the north of England and the Midlands could help boost local rental values, according to John Goodall at Landbay.
The CEO and founder of the buy-to-let mortgage lending firm insists that Britain’s transport networks are important for more than just travel times.
Goodall points to the fact that average rents have been rising around the key transport infrastructure developments currently in the pipeline, such as High Speed 2 and Crossrail 2.
He said: “A £690m competition for local authorities to tackle urban congestion and improve local transport networks, and a £220m fund for road networks, could well help to lubricate the creaking gears in Britain’s transport infrastructure.
“Along with the shortened journey times between these cities, there is a significant economic case for improving the movement of people both between and around our major cities. People now spend over half of their take-home pay on rent each month, and one of the best ways of alleviating this pressure is to improve transport infrastructure, thereby spreading populations over a larger surface area.”
High Speed 2
Research shows that all of the key stations outside of London have seen rental growth above the national average of 8.8% since the start of 2012; Birmingham Curzon Street (23.7%) and Birmingham (22.4%) have seen remarkable uplifts, while in Leeds (15.3%), Sheffield (15%) and Manchester (14.5%) rental growth has also outstripped the rest of the country.
Reflecting on High Speed 2, Goodall said: “The HS2 line may still be a decade away, but ever since the route was confirmed January 2012, rents have been climbing rapidly.
Shepperton (14%), New Southgate (11.8%), Hampton Court (9.7%), and the northernmost tip in Broxbourne (25.3%), have all seen significant rental increases.
Chessington South (7.5%) and Epsom (6.7%), perhaps by nature of the larger property types in the area, have seen less of an uplift, according to Goodall.
He added: “The current route has six termini, and four out of these six have seen rent increases above and beyond the total national average of 8.02% since the route was announced in February 2013.”