Transport initiatives set to boost housing markets in West London
The opening of the Elizabeth Line in London and a likely green light for a third runway at Heathrow, will bring important regeneration to areas of West London, pushing up housing demand and prices, a new analysis suggests.
Areas likely to benefit include Acton, Kew, Brentford, Southall, Hayes and Harlington and locations out towards Hillingdon and Uxbridge, according to the latest residential research report from property firm JLL.
It outlines that 13,000 new homes are in the pipeline for this corridor of London and it is forecasted that West London is set to outperform both Greater London and Central London in terms of sales price and rental growth over the next five years, some 13% vs 11% and 10% respectively in sales and 12% vs 11% and 9% respectively in rental growth forecasts.
JLL explains that this will be largely due to the Crossrail effect, with the greater connectivity between West London and Central London broadening the appeal of many West London locations.
The report says that over the last few years there has been a buzz of activity in Acton with 1,425 units completed since 2014 and over 2,135 units in the pipeline, amongst them a 15 year regeneration transformation programme which will see the regeneration of a council estate into a new mixed-use residential hub.
The largest scheme in the area is Acton Gardens, by Countryside and L&Q, which will deliver 1,250 private homes across 11 phases. Completed elements have attracted mostly young professionals, transforming the demographics of the area.
In addition to homes for sale, there is a pipeline of Build to Rent units under construction including Oaks Shopping Centre and The Perfume factory, offering accommodation starting from £1,150pcm.
Over the last five years, the Brentford and Kew Bridge area has seen the completion of 1,680 homes with a further 2,590 in the pipeline. The largest scheme is Barratt London’s Great West Quarter, with 428 homes, and part of a large regeneration project which includes new hotel, retail and restaurant facilities. The average price per square foot is between £650 and £700 with rental prices starting at £1,425 for a one bedroom apartment.
Since 2014, there have been 890 completions in Ealing, West Ealing and Hanwell with Dickens Yard the biggest in the area at 512 units to date. There are just 63 homes under construction, the lowest of all areas, but the pipeline is strong with 1,210 units. Average price per square foot starts at £550 and one bed apartments rent out at £1,200 a month.
Hayes and Harlington and Southall are set to benefit from the introduction of the Elizabeth Line as the area will be unlocked providing easy access to London, a game changer that will attract a more diverse demographic to the area, the report says.
There have been just 775 completions, of which more than two thirds have been Build to Rent. The Old Vinyl Factory is the key residential development in Hayes and Harlington, with 442 private units, 307 of which will be Build to Rent. The planning pipeline here is by far the most extensive in West London with 5,584 units.
Sitting on the outskirts of London, West Drayton and Drayton Gardens will be the first western stop from Heathrow on the Elizabeth Line. In anticipation of this, it has seen significant residential development to date with 1,141 completions over the last five years, the largest of which is Drayton Garden Village with 720 private units.
There are two developments under construction totalling 513 units, of which Redrow London’s Padcroft is the slightly larger of the two. Both are located within a five minute walk of the station, capturing the commuter market. New build start at £550 per square foot, while rents for a one bedroom flat vary between £1,125 and £1,200 per month.
There has been a surge of activity in recent years in Uxbridge, but the report explains that much of this remains in the pipeline, including the redevelopment of St Andrew’s Park, a former RAF, which will deliver 1,032 homes once complete. There are a further 628 units in the planning pipeline.
‘The vibrant areas of West London offer an eclectic blend of busy urban streets and an array of green space to its residents. Acton, Ealing and Hayes have seen a surge in investors looking to get ahead of the market prior to Crossrail arriving. Developers are placing emphasis on community living with shared spaces. Whether it be onsite leisure facilities or gardens and roof terraces, this focus on collective and inclusive living seems to strike a chord with tenants and owners alike,’ said Ken Dowling, associate director at JLL.
‘West London’s growing success as an alternative to purchasing in the prime London market benefits the buyer who sees the value and opportunity of long term capital gain. The speed of development and regeneration has also given rise to a robust market of domestic and international investors. The new mix of investors, owner occupiers and renters is creating a more diverse and vibrant community across West London,’ he added.