Elizabeth line rental growth outpaces the wider London market
The latest research from London lettings and estate agent, Benham and Reeves, has found that since the Elizabeth line fully opened in May 2023, rental growth along the route has outpaced the wider London average by 3.2%, with just two stations on the route having seen rental values fall, whilst some have seen growth as high as 41%.
Benham and Reeves analysed the average rent across every postcode district home to an Elizabeth line station, comparing current rental values to those recorded when the line was fully opened in May 2023.
The research shows that, on average, it now costs tenants £2,122 per month to live within reach of a Elizabeth line station, with this cost having increased by 13.3% since launch. In contrast, the wider London rental market has climbed by 10.1% during the same period.
The analysis shows that it’s areas outside of London that have been driving much of this rental growth. Stations located beyond the capital’s boundary have seen the average monthly rent increase by 14.6%, slightly higher than the 12.9% average increase seen across London-based stations.
When it comes to the Elizabeth line stations to have seen the steepest rental cost increases, Iver in Buckinghamshire tops the table. Across the SL0 postcode, home to Iver station, tenants have seen the average rent climb by 40.9% since the launch of the Liz line.
Reading ranks second, with the RG1 postcode seeing a 36.7% jump, while the RM6 postcode surrounding Chadwell Heath station has seen rents rise by 32.3% – the largest increase of all London Liz line stations.
The W2 postcode around Paddington station follows closely behind, with rental values up 30.4% since May 2023.
Other areas to see particularly steep growth include Gidea Park (22.6%), Langley (19.7%), Whitechapel (19.0%), Forest Gate (18.4%), Goodmayes and Seven Kings (18.2%), Manor Park (17.6%), Hayes and Harlington (16.7%), Abbey Wood (15.3%) and Harold Wood (15.3%).
Within central London, rental values around some of the line’s most desirable stops have also seen significant growth. Tottenham Court Road and Bond Street, both in the W1 postcode, have recorded increases of 14.6%, while the EC2 postcode area containing Liverpool Street station has seen a 12.7% rise in average rents.
Just two stations have seen rental values reduce since the launch of the Elizabeth line. Across the RG10 postcode, home to the Twyford Liz line station, the average cost of renting has fallen by 8%, with West Ealing’s W13 postcode seeing a marginal reduction of -0.2%.
Marc von Grundherr, director of Benham and Reeves, commented: “The Elizabeth line has completely reshaped rental demand across large parts of London and the South East, connecting tenants to central London far faster and more conveniently than ever before.
As a result, rental growth along the route has far exceeded the wider London average since the line launched which is saying something in a rental market as widely competitive as the capital.
Areas beyond the capital, such as Reading and Iver, have seen particularly steep growth as tenants look to balance commuting convenience with relative affordability, but even within London, rental prices in postcodes along the Elizabeth line have continued to climb at astonishing rates.
This growth demonstrates just how important a convenient commute is to those looking to rent in and around the capital and, with a migration back towards the physical workplace, this growth is likely to continue.”
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