For landlords, choosing a property to let involves making many decisions. You have so many factors to consider, including your budget, the type of tenants you want to target, the mortgage and more. But one crucial factor is the location.
If you're looking to buy a property to let in London, choosing the right location could make all the difference to the success of your investment. And one factor that could have a big impact is the opening of the Crossrail project.
What Is Crossrail?
Crossrail is one of the largest railway infrastructure projects in Europe. It consists of a 73-mile railway going right from Berkshire and Buckingham to Central London and on to Essex. 13 miles of twin tunnels are being constructed as part of the project, and it will provide a high-frequency commuter service to take the pressure off Underground lines.
This is an exciting project that will completely change the commuter experience for thousands of people when it starts running in 2018 between Paddington and Abbey Wood (it will open fully in 2019).
But it is the effect that it is having on the property market that will really concern you as a landlord.
How Crossrail Could Affect Where You Buy
Crossrail will have a number of stations along its route, 30 of which are existing stations, and 10 of which are new. These stations and their surrounding areas are becoming increasingly attractive places to live because of the new ease they will provide for getting into the capital.
This is especially true for commuters, who will like the idea of living outside of London but being able to travel into the city with greater ease. As a result, these areas could represent a great opportunity for you as a landlord.
New Hotspots Created
Crossrail released its own research report in 2015 about the effect that the project would have, which suggested it could add a massive £5.5 billion to real estate along the route between 2012 and 2021.
Now a number of areas near to the Crossrail route are seeing growth in house prices. Areas such as South Ruislip, Eastcote, Dagenham East and Rayners Lane are seeing house prices rise as demand in the suburbs increases, and areas further out from London such as Reading and Luton are also seeing a rise in prices.
Look to the Outer Suburbs
The outer suburbs of London have a lot to offer for homeowners or tenants, especially with an easier commute now on offer. Prices are also below the London average in places like Ruislip and Park Royal, making properties in these areas even more tempting.
This could therefore be a great opportunity to invest in a property that you can rent to tenants who want to commute into London. Even better, prices could rise further once Crossrail opens, making it a good investment opportunity if you decide to sell the property at a later date.