Europe’s largest infrastructure project is currently underway, since being given the green light to begin tunnelling in 2008. The Crossrail project, despite not even being completed yet, has caused a surge in house prices by almost 82%.
The Crossrail is a 73 mile railway line that is expected to open in late 2018, and will provide faster routes into London without making any changes to the underground. The line extends from Maidenhead to Shenfield, where house prices within a short walking distance of stations have risen by 5%, more than the local market, gaining a 43% average since 2008.
The property market has undoubtedly soared with estate agents along the route seeing a greater number of investors taking the plunge into a growing market. The benefit will be increased rental demand and natural house price increases once the Crossrail is up and running.
According to Knight Frank, a London estate agent, prices within a 10 minute walk of Crossrail stations in Central London have risen an average of 57% and those close to Bond Street have soared by 82%. House prices within a 15 minute walk of western Crossrail stations have risen by an average of 28% since 2008, 6% more than the local market. Knight Frank predict that London prices will rise 18% by the end of 2018 but general areas around all stations of the Crossrail will rise rapidly.
Illustration provided by Knight Frank
Gráinne Gilmore, head of Knight Frank UK argues that the train lines are a particularly important factor when it comes down to the capital’s property market. The survey conducted by the company itself identified 91% of tenants in London want to live within 1km of transport links.
‘Over the last 12 months, the price ‘ripple’ effect in London has really started to take effect, with stronger price growth in areas surrounding central London. This could help feed into stronger price growth around stations towards the east and west, especially those which have under-performed to date, and where housing supply is set to be delivered in the coming years.’
Outside of London, Action is fast developing with the largest increase of 77% over the last six years. Farringdon and Paddington have outperformed the local area by approximately 24%, with Shenfield, the eastern end of the new Crossrail, outperforming its local market by 12%.
Property experts are in particular looking to areas such as Shenfield and Brentwood, becoming increasingly popular with its fast rail access straight into Liverpool Street which will only take 40 minutes. Jeremy Smallman, a representative from the local estate agency Jackson-Stops & Staff, believes the Crossrail will increase demand for £1 million plus homes in Shenfield. Brentwood will draw more buy-to-let investors due to low house prices. Shenfield offers excellent schools and transport links, with two to three bedroom flats and small houses starting from £360,000 and expanding to four to six bedroom houses in the region of £1 million and more.
For many the Crossrail is still too far away to consider moving house, but for many first time buyers and investors, the Crossrail is beginning to materialise into a financially sound investment and whilst living further outside of London, the new fast and direct transport links will encourage more to vacate outside of the hustle and bustle of Central London.
Knight Frank Journey Times Crossrail
Feature image credit: Martin Hoscik/Shutterstock