The Hot Debate: Will The Launch of Crossrail Affect Property Prices?
The Crossrail line has caused much debate about regeneration and house price growth. However our analysis has found that only a third of locations close to Crossrail stations have seen their values increase above local markets since the start of construction! The Crossrail effect has, however, been a major player in London’s real estate market for years now, and now with Elizabeth line finally open and speedy connectivity becoming a reality, we could see an even greater price growth.
Journey time along routes is expected to be reduced by up to 30%. This means that residents of previously more isolated locations can easily access key employment centres like The City and The West End.
Past rail initiatives have shown residential properties near stations to outperform wider markets.
Five years after the opening of the Jubilee extension there was an average of 7.3% property price growth for the local areas above the rest of the market.
Some areas surrounding new Crossrail stations haven’t been over-performing, but once full service starts on the line and connectivity steps up we expect to see a premium emerge for those who live nearby.
We anticipate Crossrail to have a larger impact on properties further out from Central London, as centrally located properties are already very well connected. However, the benefit to Central London would be an increased influx of people of retail and employment opportunities.
The full impact of Crossrail on property prices is yet to be seen and we do expect further growth.