The announcement in the UK Budget that Crossrail 2 will go ahead will boost prices and demand in key suburbs such as Wimbledon, Clapham and Tooting but also in key commuter town such as Cambridge, Basingstoke, Woking and Guildford as travelling times into central London will be reduced.
It is excellent news according to Robin Paterson, chairman of UK Sotheby’s International Realty. ‘We will see pockets of accelerated growth emerge, much like we have seen around Crossrail stations such as Ealing and Slough. The new route will provide a huge boost to neighbourhoods such as Clapham and Tooting in the south, cutting journey times to The City of London in half and I would expect a future jump in prices to reflect this,’ he said.
Crossrail 2 can help deliver 200,000 homes by acting as a catalyst for development and regeneration, but only if communities accept higher densities, according to real estate firm Savills.
‘Intensifying land use might not be an issue in post-industrial areas that are being regenerated but could face local opposition in semi-rural locations adjacent to the Green Belt. Savills research shows there is tremendous potential to increase density in London. We calculate that theoretically there is the potential to deliver 1.46 million new homes in London by building at higher densities. Furthermore, our analysis highlights that the greatest opportunities are in the outer boroughs,’ said Susan Emmett, Savills residential research director.
‘The big question will be whether the affected communities are ready to embrace this brave new world. They must be reassured that delivering higher densities does not require turning Shepperton into Singapore. Done well, higher density can bring benefits by enabling better shops and services that support vibrant communities,’ she explained.
‘A design led approach where the focus is on creating attractive places along traditional street patterns must surely be the way to go. We would need to change planning policy and attitudes to density to fulfil this target. Design led approach is therefore crucial,’ she added.
Steve Sanham, development director at HUB, pointed out that Crossrail 1 has demonstrated that major infrastructure projects can have a serious regenerative effect and unlock new opportunities for housing by boosting connectivity within cities.
‘Investment into key infrastructure like Crossrail 2 is infinitely more useful in helping to deliver real affordability into the market than many of the short term housing initiatives we have seen recently,’ he said.
‘Starter Homes will only help a lucky few, and these discounts don’t solve the structural issues that make it difficult for first time buyers to get on the ladder. Opening up new areas of London as viable locations for housing will increase choice for Londoners looking for sensibly priced homes,’ he added.4
‘A threshold on how many homes the stamp duty surcharge applies to is also crucial for institutional landlords and investors. The aim of delivering more homes will not be achieved if investors are put off from creating large developments of new homes to begin with,’ he concluded.
James Finnis, head of South East Office Agency at JLL, explained that the delivery of Crossrail 2 will result in substantial benefits for London and the wider South East, including improved accessibility, the opening up of new development opportunities and value add to the London economy through job creation and increased capacity in the transportation infrastructure.
‘Crossrail 2 will complement the Elizabeth Line by dramatically reducing journey times between London and the wider South East regional markets. It will further improve the connectivity of many South West and North/North East London suburbs with towns like Cambridge, Basingstoke, Woking and Guildford to benefit from better and more frequent rail connectivity through London and increasing the attractiveness of these destinations as places to live and do business,’ he added.
