New research by London lettings and estate agent, Benham and Reeves, reveals that all but one line on the London Underground has seen rental market values decline as a result of the pandemic and the lower tenant demand in the capital.

Benham and Reeves looked at rental values surrounding each station on the London Underground and how they’ve been affected by the pandemic.

Rental values dip for the majority of train stations

The research shows that in December 2019, before the outbreak of Covid-19 in the UK, the average cost of renting around a tube or DLR station was £2,215 per month. However, the latest figures show that this average monthly cost has since fallen to £2,007 – a decline of 9.4%.

The Circle line has seen the biggest decline of all lines, with the average cost of renting along the line as a whole dropping -16% to £2,566 per month.

The Victoria line has also seen a double-digit decline of 11%, falling from an average of £2,227 per month prior to the pandemic to £1,982 presently.

The Waterloo and City line (8.6%), District (8.1%) and Central lines (7.1%) also placed within the top five lines to see the largest drop in the average cost of renting as a result of the pandemic.

Only one line has bucked the trend and that’s the DLR. Before the pandemic, the average cost of renting along the DLR was £1,647 per month. This has since risen by 4.5% to £1,721 per month.

The Hammersmith and City and Jubilee lines have seen the lowest decline 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% fall.

Will the declining rental value trend continue?

Director of Benham and Reeves, Marc von Grundherr, commented: “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.”

von Grundherr added: “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 concluded: “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. So while renting close to a tube station still remains more affordable at present, tenants looking to secure a bargain need to act now in order to do so. With many businesses planning a full return to the workplace in autumn, rental values are sure to bounce back imminently as a quick commute once again becomes a sought after rental property feature.”