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TODAY'S OTHER NEWS

Crossrail delay unlikely to halt rental growth around Elizabeth Line

Crossrail will demand hundreds of millions of pounds from the government in its third bailout of the year according to various reports as the project’s completion is delayed by a year to the autumn of 2019, but the hold-up is unlikely to stop the line impacting rental growth in the areas surrounding the route.

The need for another bailout is widely expected to result in the sacking of Terry Morgan as chairman of the HS2 rail project, but landlords should still benefit from the Crossrail scheme.

A recent study found that average rental growth along the Elizabeth Line, which is set transform the way people travel in and out of London and the South East, has increased at more than double the rate of the London average over the last six years thanks to strong demand from renters looking to live along the £15bn Crossrail project.

According to research from Landbay, average rental growth around the stations of the Elizabeth Line, excluding zone 1, is more than double the London average since 2012, with rents along the line growing by 16.38% in comparison to 8.2%.

As the major construction project draws to a close the Landbay Rental Index, powered by MIAC, examined the effect it is already having on rental growth along the new rail network.

Rents in the areas surrounding the 38 stations analysed along the Elizabeth Line have (excluding zone 1) grew from an average of £1,193 in January 2012 to £1,376 in June 2018. This means that, on average, renters had to fork out an additional £2,196 this year compared to when construction started in 2012.

Areas to the East of zone 1 have seen the largest rent rises, on average increasing by 17.22% since 2012. Areas to the West of zone 1 have seen growth of 15.38%.

Three areas surrounding the stations along the Elizabeth Line have seen rents grow by over 30% since 2012.

The station that has seen the highest rental growth is Southall in the West at 38.19%, while Manor Park and Romford to the East have seen rents increase by 37.24% and 30.47% respectively.

The surrounding areas of eight stations have seen rents rise between 20-29% since 2012, including Abbey Wood (26.51%), Ilford (27.24%), Seven Kings (26.09%), Goodmayes (25.18%) and Chadwell Heath (27.35%) to the East of the line, and Burnham (26.02%), Iver (28.03%), and Hayes & Harlington (21.05%) to the West of the line.

Three stations have seen local rents fall since 2012, with rents in Taplow to the West of the line decreasing by 2.02% and Canary Wharf and Maryland in the East decreasing by 0.09% and 6.51% respectively.

John Goodall, CEO and co-founder of Landbay, commented: “The Elizabeth Line will improve access to the centre of London for thousands of commuters, but it comes at a premium for renters.

“The prospect of better transport links is creating higher demand for property in these areas. As a result, house prices and rents alike have increased, which for many landlords is an attractive proposition due to the prospect of extra return on investment.”

Station

County/London Borough where station resides

Travel Zone

£ Rents Jan-12

£ Rents Jun-18

% Change

Jan-12 to Jun-18

Reading

Reading

OUT

885

1,013

14.45%

Twyford

Wokingham

OUT

1,085

1,171

8.01%

Maidenhead

Windsor & Maidenhead

OUT

1,140

1,189

4.32%

Taplow

Buckinghamshire

OUT

1,233

1,208

-2.02%

Burnham

Slough

OUT

890

1,122

26.02%

Slough

Slough

OUT

896

1,002

11.85%

Langley

Slough

OUT

1,035

1,231

18.97%

Iver

Buckinghamshire

OUT

1,134

1,452

28.03%

West Drayton

Hillingdon

6

1,119

1,185

5.82%

Hayes & Harlington

Hillingdon

5

1,060

1,291

21.75%

Southall

Ealing

4

1,098

1,517

38.19%

Hanwell

Ealing

4

1,185

1,364

15.03%

West Ealing

Ealing

3

1,482

1,612

8.72%

Ealing Broadway

Ealing

3

1,754

1,963

11.91%

Acton Main Line

Ealing

3

1,609

1,924

19.62%

Paddington

Westminster

1

2,754

2,689

-2.35%

Bond Street

Westminster

1

5,033

4,566

-9.28%

Tottenham Court Road

Westminster

1

2,893

2,716

-6.12%

Farringdon

City of London

1

2,238

2,413

7.82%

Liverpool Street

City of London

1

2,221

2,065

-7.03%

Whitechapel

Tower Hamlets

2

1,685

1,820

8.02%

Canary Wharf

Tower Hamlets

2

1,883

1,881

-0.09%

Custom House

Newham

3

1,426

1,561

9.44%

Woolwich

Greenwich

4

1,110

1,327

19.55%

Abbey Wood

Greenwich

4

863

1,092

26.51%

Stratford

Newham

2/3

1,425

1,696

18.96%

Maryland

Newham

3

1,517

1,418

-6.51%

Forest Gate

Newham

3

1,101

1,317

19.59%

Manor Park

Newham

4

993

1,363

37.24%

Ilford

Redbridge

4

1,090

1,387

27.24%

Seven Kings

Redbridge

4

1,130

1,424

26.09%

Goodmayes

Redbridge

4

1,047

1,310

25.18%

Chadwell Heath

Barking & Dagenham

5

1,057

1,346

27.35%

Romford

Havering

6

998

1,302

30.47%

Gidea Park

Havering

6

987

1,119

13.37%

Harold Wood

Havering

6

994

1,076

8.24%

Brentwood

Essex

9

1,025

1,054

2.85%

Shenfield

Essex

OUT

1,428

1,662

16.41%

Poll: Have you invested in property near any of the stations of the Elizabeth Line?

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