Research by London rental platform, Rentd, has shown that tenants keen to make the most of Crossrail will pay up to 89% more to live within arm’s reach of a Crossrail station, while rental values within these postcodes have climbed by as much as 36% in the last year alone.
Rentd analysed rental values in postcodes home to a Crossrail station, how they’ve changed over the last year and how they compare to the cost of renting across the wider area they are located within.
Crossrail cost of renting
The research shows that Crossrail rental values have climbed by 15% on average in the last year alone. Renting within a Crossrail postcode currently costs £1,605 per month on average, up £207 in a single year.
Farringdon has seen the largest jump, with the average rent in the EC1 postcode increasing by 36% on an annual basis.
Home to both the Tottenham Court Road and Bond Street Crossrail Stations, the W1 postcode has seen the second largest annual increase, with the average rent up 33%. At £3,653 per month, it’s also home to the highest Crossrail rents in London.
Forest Gate (31%), Liverpool Street (29%), Paddington (25%) and Whitechapel (25%) have also seen some of the largest increases in rental values in the last year alone.
Just one Crossrail station is home to a lower average rent compared to a year ago. Twyford has seen the average rent within the postcode of its Crossrail station fall by -15% in the last year.
However, it’s the SL1 postcode, boasting two Crossrail stations in Slough and Burnham, where tenants can find the most affordable rental properties. Rental values in the area average just £1,080 per month.
Crossrail rental price premiums
When comparing the average rent in Crossrail postcodes to their wider local authorities, Crossrail stations also command a 15% rental premium.
Tottenham Court Road tops the Crossrail rental price premium table. The average rent in the W1 postcode comes in 89% higher than the average cost of renting in Camden.
Liverpool Street (73%) and Farringdon (47% again rank high, along with Bond Street (45%).
Twyford is the only station where rental values around its Crossrail station are more affordable, coming in -5% below the wider cost of renting in Wokingham.
Founder and CEO of Rentd, Ahmed Gamal, commented: “It’s not just homeowners who are benefitting from the arrival of Crossrail, landlords with rental homes within Crossrail postcodes are also enjoying a sharp uplift in rental values as a result of heightened demand.
“It’s likely to become one of the most desirable aspects of a rental property for many tenants, who will be able to benefit from a quick commute and more affordable rental prices in areas they would otherwise not have considered.
“Take the likes of Reading and Shenfield for example. While rental values have climbed by more than 20% in a year, they remain far more affordable from a tenant perspective when compared to many areas within the M25.”