The impact on the housing sector of the new Elizabeth Line in London has been exposed, with new research suggesting that rents are already soaring close to the multi-billion Crossrail project.
Excluding zone 1, the average rent in areas in close proximity to Elizabeth Line stations has grown twice as much as the average for London over the last six years. Indeed, the research from Landbay shows that rents along the line have grown by 16.38% compared with 8.2% elsewhere.
Set to open to in autumn 2019, the Elizabeth Line will transform the way commuters travel across London and the South East. This increased access to workplaces in central regions is already having an impact.
With the project soon to be complete, the Landbay Rental Index, powered by MIAC, has examined the impact that the new rail network is having on rental growth.
The index shows that renters have paid an average of £2,196 more this year than when the project first began back in 2012, with rents in the surrounding areas of the 38 stations having grown from a monthly average of £1,193 to £1,376 over the six years.
Regionally, areas east of zone 1 have risen by 17.22% on average since 2012, while areas to the west have rocketed by 15.38%. This comes at a time when London is experiencing an overall slowdown in rental growth, with averages down 8.20% over the same period.
Looking more specifically, rents near Southall station, west of Central London, have increased the most – with averages up 38.19%. Meanwhile, Manor Park and Romford in Essex have also seen rents increase by over 30%.
Overall, eight stations have experienced rent increases of between 20% and 29% since 2012 including Abbey Wood up 26.51%, Ilford up 27.24%, Seven Kings up 26.09%, Goodmayes up 25.18% and Chadwell Heath up 27.35% to the east of the line, and Burnham up 26.02%, Iver up 28.03% and Hayes and Harlington up 21.05% to the eest of the line.
However, three stations have bucked the trend, with local rents falling since 2012. Rents in Taplow to the west of the line have decreased by 2.02%, while rents in Canary Wharf and Maryland in the east have decreased 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.