The so-called Oxford-Cambridge Arc is set to turbo-charge investment in the area, a new analysis suggests.

UK Chancellor Rachel Reeves recently revived the idea of the Oxford-Cambridge Arc alongside the continued development of a proposed East West Rail route that would link the two academic and high-growth cities.

Now an analysis suggests this may trigger rent rises of up to 23% in one year alone.

Lettings sector operator Zero Deposit has looked at the potential boost based on the average rate of rent price growth over the past year in each local authority district that houses a East West link train station, plus the average 12% development-related rent value boost that can occur as a result of major infrastructure and transport network development projects.

Over the past year, the 12 locations that will have train stations along the proposed East West Rail link which will serve as the transport backbone for the Arc have seen an average rent increase of 7.8%, giving  an average price for the region of £1,346 per month.

Bedford has seen the biggest price increase of 9.5% to give a current average rent price of £1,084 per month.

Cambridge is set to have two stations along the Arc, Cambridge and Cambridge South. Over the past year, the average rent in Cambridge has grown by 9%, leaving the average price at £1,747 per month.

Central Bedfordshire will also have two stations on the line, Tempsford and Marston. Here, the average rent price has increased by 8.8% on the year to give an average rent price of £1,160.

In Oxford, rents are up 8.6% to sit at an average of £1,789 per month, while the average rent in Cambourne, South Cambridgeshire, currently sits at £1,327 after annual growth of 8.2%.

Using the past year’s rent price increase as a guide, and with the addition of the 12% average increase to rents that comes as a result of major infrastructure development Zero Deposit has forecast how local rents might increase over the coming year .

Across the 12 stations, the next year has the potential  to see rent prices increase by an average of 21% which will give an average monthly rent value of £1,623 across the Oxford-Cambridge Arc.

Bedford is expected to see the largest increase of 23% which will result in an average rent price of £1,328 per month.

Homes located close to the two Cambridge stations will see an increase of 22% to create a monthly price of £2,131, while the two South Bedfordshire stations will also see a rent boost of 22%, leaving the average price at £1,413.

Oxford and Cambourne are set to see rent values boosted by 21%, which will mean the average monthly rent will sit at £2,173 and £1,607 respectively.



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