Rents near Elizabeth line stations rocket up a third since opening
Rents for homes near recently-added Elizabeth line stations have shot up by more than a third since 2022 as the housing crisis in the capital continues to intensify.
In some locations, prices have risen by more than 70 per cent as demand for well-connected properties soars, according to lettings software firm Goodlord.
This rise outstrips the average rental cost rises of a quarter seen across Greater London during the same time period.
“When new transport connections open up, there is always a surge of demand from renters looking to snap up cheaper rents in newly well-connected areas,” said Oli Sherlock, managing director of insurance for Goodlord.
“However, as we can see from this Elizabeth Line data, this ‘station surge’ ultimately pushes rents up even faster – creating mini rental hot spots in and around Greater London,” Sherlock added.
Rents in Whitechapel – now just eight minutes from Tottenham Court road versus 20 minutes in 2021 – rents have risen by 73 per cent.
In South East London’s Abbey Wood, renters have seen their monthly bill rise 50 per cent, from £1,157 in 2022 to £1,738 today.
Rental crisis
As transport connections make areas further out of the city more desirable, locations even miles from the centre of the capital have become prohibitively expensive.
One in four Londoners say they may need to leave the capital in the next 12 months to find an affordable rent, and an equal number think there are enough suitable properties available in London for them to rent, according to London Councils.
On average, Londoners say they spend 42 per cent of their personal monthly income on their rent or mortgage.
Rental giant Grainger said it expects the rental crisis to worsen in the UK in the decade as demand continues to outstrip supply.
A recent G15 report found a 66 per cent drop in new affordable homes being built in the last two years, citing higher post-Grenfell building costs and a labour shortage.
“Rents have risen dramatically across the country in recent years… this is felt acutely in and around London, where tenants always pay a premium compared to the national rental average,” Sherlock added.