Infrastructure, regeneration and green space to pump potential for property investors
Southall property is cheaper than its neighbours – Brentford, Greenford and Heston – but this could change soon. Rightmove has predicted that Southall will be one of London’s fastest property price growth areas. Property values and rental prices are set to continue rising here, thanks to the combined effects of Crossrail (aka the Elizabeth line) and Heathrow Airport.
Crossrail boosts rental prices in Southall
Even though Crossrail services have not yet started, and the improvements to Southall’s Crossrail station were delayed for 18 months, rental prices in Southall have been the strongest performer in London. People are renting here in anticipation of the benefits of the Elizabeth line – easier access into London, with Liverpool Street and Canary Wharf just 24 minutes’ and 31 minutes’ travel time respectively.
The average rent along the Elizabeth line has increased at double the rate of the London average during the last six years. According to research from Landbay, the London average rent has increased by a shade more than 8% since 2012, when construction on the Crossrail project started. Along the Crossrail route, the average rent has increased by almost 16.5%.
In Southall, the average rent has increased by more than 38% over the same period – more than twice as fast as the average rent rise along the Crossrail route, and nearly four times faster than the London average.
Landbay’s Rental Price Index (June 2018) published the average rental price in Southall as £1,517, versus £1,098 in January 2012.
Why are rents rising so fast in Southall?
The knowledge that transport links are improving has prompted higher demand for property in the areas immediately surrounding Crossrail stations. But why is the rent rise in Southall so much higher than elsewhere? The answer is more complex than simply pointing to Crossrail.
Regeneration of Brownfield is unlocked by Crossrail
Crossrail coming to Southall has unlocked the potential of its large stock of brownfield land. Developers have realised this, acted, and begun redeveloping swathes of land here.
Near to the station, Merrick Place, a £200 million scheme, will create 575 new homes in four towers. This is set to trigger the regeneration of Southall’s centre for the next 10 years.
However, Merrick Place is dwarfed by the 25-year regeneration of 88 acres of brownfield land that used to house the old gasworks. Southall Waterside will deliver 3,750 new homes. It will provide new parks and green spaces, walkways and cycle paths, and waterside living that is likely to be the most attractive in London. Every home will be within a five-minute cycle ride of a station.
In July last year, Cushman & Wakefield published a study in which they named Southall as one of a handful of untapped London locations where the average property price is under £500,000. Cushman & Wakefield’s Oliver Christy described Southall as being “on the cusp of change”. That change is now happening. Rightmove forecasts that Southall will become one of London’s highest price growth areas, thanks to regeneration.
Heathrow Airport expansion to create thousands of jobs for Southall’s residents
Heathrow Airport looks set to get a third runway, and this will be great news for residents in Southall. Crossrail will slash journey times between Southall and Heathrow Airport to just eight minutes. Heathrow Airport’s expansion will create nearly 40,000 new local jobs. These jobs will include 5,000 new airport apprenticeships – a real boost to employment for young people in the area.
Southall – transforming from brownfield to vibrant green space
Developer Berkeley Group is emphasising community at Southall Waterside. The unique strategy of ‘staged placemaking’ will ensure that communities are created at every phase of development. Green space is central to this, with parks and open areas providing superior outside space for children to play and people to meet and take part in recreational pursuits.
This focus on community and green space near to Crossrail is a truly exciting prospect.
In 2012, Crossrail forecast that property prices near to new stations would increase by 25% more than the average property price increase in central London. Infrastructure improvements and regeneration are key to unlocking this potential.
According to British Pearl, early investors in property within a mile of Crossrail stations saw their investment pile on 66% between 2009 and August 2018 – 15% more than the rest of London. Prices at Woolwich have doubled since 2007, thanks in large part to the regeneration that has taken place because of the infrastructure improvements. Could we see similar happen in Southall in the next five to 10 years?
The potential for profit by investing in Southall property is huge. Heathrow Airport and Crossrail are the infrastructure improvements that could boost property values and rental prices. But this isn’t the end of the story. The Office for National Statistics has done its own research into the effect of nature on property prices. It found that developments that benefit from green space and being close to woodland and parks should expect their property prices to outperform other properties by 2%.
Southall Waterside is near Crossrail. It’s a great location for commuters. It will benefit from the thousands of jobs created at Heathrow Airport. And it is enveloped in green space. The potential speaks for itself.
For more information about Southall Waterside property, contact the team at Gladfish today.
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