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%
|
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