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. 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 (excluding zone 1) grown 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 inflating by 17.22% since 2012. Areas to the West of zone 1 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 in the West (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 said: “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."
