Rents of homes near London’s Elizabeth Line up substantially since construction began
Average rents along the Elizabeth Line in London have increased at more than double the rate of the London average over the last six year, a new study has found.
Rents to the east of the line have seen the strongest growth while Southall to the west of the line has seen the greatest increase since January 2012 when construction started, at 38.19%
Overall rents for homes around the stations of the Elizabeth Line in London, excluding zone one, is more than double the London average since 2012, with rents along the line growing by 16.38% in comparison to 8.20%, according to new research from Landbay.
The £15 billion Crossrail project, one of the UK’s biggest transport infrastructure developments, has had major economic impact on many areas along the line, it points out.
It adds that the Elizabeth Line, which will open to commuters in Autumn 2019, is set transform the way people travel in and out of London and the South East, improving access to jobs in the centre.
As the major construction project draws to a close the Landbay rental index, powered by MIAC, examines 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 grown from an average of £1,193 in January 2012 to £1,376 in June 2018. This means that, on average, they are up £2,196 this year compared to when construction started in 2012.
Areas to the east of zone one have seen the largest rent rises, on average inflating by 17.22% since 2012. Areas to the west of zone one have seen growth of 15.38%. London has largely seen a slowdown in rental growth over the same period, with an average of 8.20%.
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, up 38.19%, while Manor Park and Romford to the East have seen rents increase by 37.24% and 30.47% respectively.
Rents in Abbey Wood are up 26.51%, Ilford up 27.24%, Seven Kings up 26.09%, Goodmayes up 25.18% and Chadwell Heath up 27.35%, all to the east of the line, while they are up 26.02% in Burnham, in Iver up 28.03% and in Hayes and Harlington up 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.
‘The Elizabeth Line will improve access to the centre of London for thousands of commuters, but it comes at a premium for renters,’ said John Goodall, chief executive officer of Landbay.
‘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,’ he added.