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Crossrail 2 and HS2 Boost Rental Growth

Planned railway infrastructure investments have helped to boost rental growth in towns and cities located by proposed stations, according to new research.

Northern Powerhouse Investment

Planned railway infrastructure investments have helped to boost rental growth in towns and cities located by proposed stations, according to new research.

The report, compiled by property investment platform Landbay, revealed that the High Speed 2 (HS2) and Crossrail2 projects are already having an impact on rental prices along the proposed routes.


Following the confirmation of HS2 in January 2012, towns and cities along the route, which will travel from London to key locations in the North, have reported increased rental growth far exceeding the national average of 8.8%.


As the proposed Midlands hub of the new line, Birmingham Curzon Street has seen the largest increase, reaching 23.7% since the start of 2012, with the rest of the city seeing an average increase 22.4%.


Other major cities that will benefit from the route are Leeds, Sheffield and Manchester, where there has been rental inflation of 15.3%, 15% and 14.5% respectively. Prior to the announcement of the new rail connection, both Leeds and Sheffield had experienced declining rental rates.


The new Crossrail 2 line, travelling across London from the north to the south, has also seen above average rental growth around the majority of its intended stations since the announcement of the new route in February 2013.


Leading the growth along the route is Broxborne, where rental prices have risen by 25.3% - standing in stark contrast to the 7.6% fall in rents seen in the 12 months prior to the launch of Crossrail 2.


There has also been strong growth in Shepperton, New Southgate and Hampton Court, with the locations experiencing growth of 14%, 11.8% and 9.7% respectively.


While HS2 and Crossrail 2 are not due to be completed until circa 2030, Landbay believes that both projects have been significant in contributing positive rental growth to these areas.


The property investment platform reported earlier this week that the UK's regions are leading rental growth, with 2016 providing the fastest increases in rents for five years.

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