Rents near Crossrail 2 fall as project is shunted back

Rents are falling near Crossrail 2 stations as City Hall and the Department for Transport tussle over funding the £31bn project, Landbay research has found.

They fell in 15 local authorities in the year to September, including Broxbourne (-1.75%), Richmond (-1.13%), and Spelthorne (-2.16%), with the exception of Enfield (0.4%).

In a leaked letter Transport for London privately warned that Crossrail 2 could be delayed by a decade from 2033 to the 2040s by using money from ticket receipts on operational parts to fund the rest of the project.

Since February 2013 when the original Crossrail 2 announcement was made rents have risen considerably in a number of areas, including Broxbourne (21.5%), Enfield (13.8%), Haringey (11.4%) and Spelthorne (10.5%).

John Goodall, chief executive and founder of Landbay said: “The idea of a north/south London railway dates back to the 70s, but it was only in 2013 that we found out where Crossrail 2 would actually run.

“Planned infrastructure is a key driver of tenant demand, so rents and property prices along the planned line quickly followed suit. But news that the line may now be delayed by a decade is nothing short of a hammer blow to all those that have had the foresight to plan that far ahead.

“What’s needed by tenants, landlords, buyers, business, and builders is a clear commitment from the government that the project will be delivered in 2033 as expected. Not only to help people and businesses plan their lives ahead, but also to allow adequate time for local authorities to plug housing shortfalls before demand spirals out of control.

“For example, the latest £2bn social housing pledge is an encouraging sign that the government is taking seriously the UK’s housing shortage, but this could and should be linked to the UK’s infrastructure plan, to spare any nasty surprises down the track.”

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