House prices set to rise by 25% along new Crossrail rail project in and around London
Crossrail, one of the most significant infrastructure projects ever undertaken in the UK could help create £5.5 billion in added value to residential and commercial real estate along its route between 2012 and 2021, according to new research.
Property prices in central London next to eight new stations and next to existing stations that are being refurbished could rise by up to 25% whilst those in suburbs and in the outlying areas where the new rail link is being built in Berkshire and Essex could rise by 20%.
The report for Crossrail by GVA, the UK’s largest independent commercial property consultant, unveils which areas are likely to get a boost.
Stretching from Maidenhead and Heathrow in the west, across to Shenfield and Abbey Wood in the east, the new railway will cover 118km of track including 21km of new twin bore rail tunnel with services are due to start in 2018.
Crossrail will, for the first time, produce a direct connection between all of London’s main business centres, linking Heathrow, with Paddington, the West End, the City and Canary Wharf. Up to 24 trains per hour will operate in the central section between Paddington and Whitechapel during peak periods, with each train able to carry 1,500 passengers. An estimated 200 million people will travel on Crossrail each year.
Crossrail will also create quality new buildings above and around its new stations, benefitting workers, residents and visitors for generations to come. The improvements in journey times and the frequency of services provided together with this investment in London’s built environment will have a significant impact on London’s commercial and residential market.
The report says that Crossrail is already having a positive impact on investment decisions and at many locations Crossrail will be influential in supporting and influencing new development.
Areas where they are likely to be distinct or large scale impacts on the property market as a result of Crossrail include Tottenham Court Road, Farringdon, Liverpool Street, Whitechapel, Ealing Broadway, Southall, Hayes and Harlington, Slough, Maidenhead, Stratford, Ilford, Seven Kings, Goodmayes, Romford, Brentwood, Shenfield, Custom House, Woolwich and Abbey Wood.
‘One of the biggest impacts of Crossrail will be on the commercial and residential property market with additional value of as much as £5.5 billion generated along the route. Crossrail will have a distinct impact on the residential property market not just in London but also several areas in Essex and Berkshire,’ said Mike Taylor, director at GVA.
‘As a result of significantly improved transport connections, areas such as Abbey Wood, Woolwich, Ealing Broadway and Southall are highlighted as future places to watch. Crossrail is more than a new rail link, it will be the catalyst for regeneration and a key driver in maintaining London’s position as a leading global city,’ he added.
Andrew Wolstenholme, Crossrail’s chief executive pointed out that Crossrail is already having an impact on property investment decisions. ‘In many areas, Crossrail will have a transformative impact as a result of new journey opportunities and direct access to London’s major employment areas,’ he said.
‘The new Crossrail stations will be spectacular and are being developed to maximise the regeneration opportunities brought by the new railway. Crossrail will support the delivery of over 57,000 new homes and 3.25 million square metres of commercial space along with significant public realm improvements, which will leave a lasting legacy for London,’ he added.
Crossrail is vital to support London’s growing population and to ensure the city’s future economic prosperity in an increasingly competitive world, according to The Mayor of London, Boris Johnson.
Liz Peace, chief executive of the British Property Federation, said that modern and reliable infrastructure is vital for economic growth and the case for further investment is compelling when you see the benefits of the Crossrail project clearly spelt out.
‘As well as acting as major catalyst for regeneration along its route, Crossrail demonstrates that investing in infrastructure makes sound economic sense. Every pound of properly targeted infrastructure spend can generate up to ten times the initial investment in broader economic terms, and the new homes and office space will help in an area of high demand and constrained supply,’ she explained.