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The Value of Crossrail

Crossrail has been labelled as one of Britain’s most ambitious transportation projects to date. From its humble beginnings in 2009 when ground was first broken in Canary Wharf, it appears the finish line for the colossal £14.8 billion project is finally in sight, with a completion date of December 2018 expected.

Named in honour of Her Majesty the Queen, the Elizabeth Line, or the affectionately named ‘Lizzie Line’ by some, will bring far reaching economic benefits to Greater London. The 118km line will connect 40 stations, 10 of which are newly created. The line will span from Reading and Heathrow Airport Terminals in the west – to Abbey Wood and Shenfield in the east, and pass through the main London Stations of Paddington, Farringdon, Bond Street, Liverpool Street and Canary Wharf. It will offer significantly shorter transportation times, reducing existing travel times by an average of 15 minutes for commuters. It will add 10% capacity to London’s rail network, and bring an extra 1.5 million people within 45 minutes of central London. The benefits speak for themselves.

Source: TfL Crossrail.

Research provided by Hamptons International suggests that house prices within a mile radius of any of the 40 Crossrail stations on average have increased by 66% between the period of 2009 to 2017. This is 15% above the greater London average of growth over the same period.

Below, we take a look at some of the locations that have experienced substantial growth since the Crossrail inception and also hold future growth prospects.

Abbey Wood

According to Rightmove, average property prices in Abbey Wood since 2015 have increased from £277,537 to £350,986 in 2018, reflecting a 26.5% growth over the past 3-year period (or 8.8% per year). Abbey Wood has been one of the big winners from Crossrail with a new station being built and transport times being slashed. A journey to Heathrow airport is now 42 minutes quicker, and access to central London is now up to 30 minutes quicker. At an average property price of £350,986, it is still an affordable option for many Londoners commuting to the city. Many experts consider that continued regeneration and gentrification of the area will prove a positive force with good property price growth prospects in the future.

Woolwich

One stop closer than Abbey Wood, Woolwich has been a hotbed of developer activity since Crossrail made an appearance. Most notably is the mammoth Berkeley Homes £1.2 billion Royal Arsenal complete redevelopment which already houses some 5,000 new residents. According to Rightmove, average property prices in Woolwich since 2015 have increased from £306,323 to £394,026 in 2018, reflecting a 28.6% growth over the past 3-year period (or 9.5% per year). JLL research lists Woolwich as one the biggest winners in terms of proposed house price growth projected to 2020.

Ilford

Staying east but moving north, and we have the almost forgotten Crossrail hotspot of Ilford.  According to Rightmove, average property prices in Ilford since 2015 have increased from £339,013 to £410,061 in 2018, reflecting a 21.0% growth over the past 3-year period (or 7.0% per year). A journey from Ilford station to Tottenham Court Road will take a mere 22 minutes, Bond Street in 24 minutes and 51 minutes will get you to Heathrow terminals. For many Londoners these commute times seem like a dream. With average property prices at £410,061, Ilford still sits as one of the most affordable places in London, and it goes without saying that prospects appear bright.

Southall

Moving west along the line, we have the ever-popular area of Southall. According to Rightmove, average property prices in Southall since 2015 have increased from £311,366 to £401,808 in 2018, reflecting a 29.0% growth over the past 3-year period (or 9.7% per year). A journey from Southall station to Paddington will take 12 minutes, and Bond Street 17 minutes. Journey times into the city will be on average 24 minutes less than they currently take. With average property prices at £401,808, the area is significantly lower priced than nearby Ealing. As people continue to move west towards more affordable options, Southall is poised to benefit in the long term.

The above represents only a small snapshot of some key locations along the Crossrail line. The overall impact of Crossrail on property prices has been undeniably positive. It has lead to the revival and rejuvenation of a number of somewhat forgotten areas, and offers long term regeneration prospects which many Londoners will benefit from.

Bibliography

http://www.crossrail.co.uk/route/wider-economic-benefits

https://tfl.gov.uk/travel-information/improvements-and-projects/elizabeth-line

http://www.crossrail.co.uk/news/articles/crossrail-to-become-the-elizabeth-line-in-honour-of-her-majesty-the-queen

https://tfl.gov.uk/corporate/about-tfl/how-we-work/planning-for-the-future/bakerloo-line-extension

http://crossrail2.co.uk/

http://www.newlondonarchitecture.org/nla-network/nla/senior-management-team/peter-murray

http://www.telegraph.co.uk/property/house-prices/house-prices-can-still-make-money-jumping-crossrail/

https://www.homesandproperty.co.uk/property-news/buying/new-homes/where-to-buy-along-the-elizabeth-line-the-crossrail-effect-boosts-house-prices-in-southeast-london-a116586.html

https://www.cbreresidential.com/uk/sites/uk-residential/files/Crossrail%2C%20an%20update.pdf

http://www.cityam.com/268485/focus-woolwich-crossrail-huge-regeneration-project-cultural

https://www.theguardian.com/money/2017/may/26/lets-move-ilford-east-london-boomtown-property-tom-dyckhoff

http://residential.jll.co.uk/new-residential-thinking-home/research/crossrail-opportunities-2016/jll-crossrail-tool-2016

http://www.rightmove.co.uk/house-prices/

Always seek independent advice. This blog has not been approved as a financial promotion by Cogress Limited. We are not responsible for the content of external websites. Potential investors must rely on their own due diligence prior to investing.

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Tom Berger 2018-04-11T09:08:20+00:00