The investment case for West Drayton, London

The investment case for West Drayton, London

It is our belief that there is a compelling investment case for residential property in West Drayton, in the London Borough of Hillingdon.

Three factors underpin the investment case for the area and our properties on the platform:

  • West Drayton Crossrail station is due to open in the area in 2019. The decrease in journey times to central London is expected to have an impact on local GDP, which is a key driver of house prices.
  • We note that West Drayton’s average property values are below those of surrounding areas – such as Iver, Langley and Uxbridge. This provides opportunity for capital growth as residents in nearby areas seek better value.
  • The area benefits from many nearby businesses and amenities, including Hillingdon Hospital, Stockley Business Park and Heathrow Airport – attracting many employees who will be looking to rent locally.

These points are discussed further below, or you can go directly to our property page by clicking here.

New Crossrail stations will increase local GDP

Crossrail is a new high-speed railway line crossing London, running from Reading in the West to Brentwood in the East, and is also Europe’s largest current infrastructure project. The line increases London’s train capacity by 10%.

JLL, in their report on Crossrail investment opportunities, forecast that properties located 750m from West Drayton and Iver stations will experience +48% capital growth and +51% capital growth, respectively, from the end of 2014 through to the end of 2020. Although our properties are over 750m from a Crossrail station, and therefore do not meet the JLL report parameters, they should attain some benefit from their proximity to the stations. Both properties are within 1.5km of West Drayton station and 3km of Iver station.

Once completed, the journey from West Drayton Station to Bond Street in the West End will be reduced from 40 minutes to 24 minutes and the journey to the financial district in Canary Wharf from 57 minutes to 37 minutes.

West Drayton Station will start running Crossrail services from 2019 and the reduction in journey times is expected to have an impact on local GDP through improved connections to central London, the City and Canary Wharf.

Lower house prices than in surrounding areas

Property prices in West Drayton are lower than those of neighbouring areas. According to Rightmove, the average property price in the area is £256,303, while average prices in the neighbouring areas (Iver, Langley and Uxbridge) range from £308,827 to £441,866, making the difference quite a large one. As residents in West London seek better-value areas, there is room for capital growth in West Drayton.

An Employment Hub with strong rental prospects

West Drayton is home to a wealth of local amenities and businesses, which attracts an array of tenant types. Hillingdon Hospital, Stockley Business Park and Heathrow Airport are all within a 3km radius of the area.

As well as providing convenient, local healthcare, Hillingdon hospital employs over 2,500 people, who have a strong propensity to rent in the local area.

Stockley Business Park, one of the largest business parks in Europe, hosts a range of blue chip companies, including Apple, GlaxoSmithKline and BP, which in turn attracts many highly qualified professionals to this area.

West Drayton is also ideally placed in relation to Heathrow Airport – the largest employment hub in the London Borough Of Hillingdon. Heathrow and its on-site businesses employ 76,500 people and, crucially, 50% of the workforce live nearby. Heathrow Airport is also bidding to build a new runway. If successful, this is estimated to provide more than 120,000 new jobs. This has the potential to dramatically improve employment prospects in the five neighbouring boroughs – of which Hillingdon is one.




Important Note

The value of your investment can go down as well as up. Gross Rent and Dividends may be lower than estimated. You may have to wait until the next five year anniversary of the property’s listing on the Property Partner platform for an exit event. See Key Risks for further information. Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice. This financial promotion is made by London House Exchange Limited trading as Property Partner™, which is authorised and regulated by the Financial Conduct Authority (firm reference number 613499).