Residential property prices surrounding central London Crossrail stations have outperformed the wider prime central London market since 2008 and are expected to rise by an extra 1% a year. New research from Knight Frank shows the effect of Crossrail, the biggest rail infrastructure project in London for decades, on house prices within a 10 minute walk of the central stations.
Since the project received Royal Assent in 2008 average prices within a 10 minute walk of stations have risen by a cumulative 8% more than the wider central London market. The international property firm says that as the opening of Crossrail draws closer it expects that this trend will continue with prices surrounding Tottenham Court Road and Farringdon set to reap the biggest benefits, rising by an extra 1.5% a year above the base forecast. This would result in a 43% rise by the end of 2018.
Prices surrounding Paddington, Bond Street and Liverpool Street are expected to rise by an extra 1% a year, giving an uplift of 39%, while prices in Whitechapel and Canary Wharf are tipped to rise by an extra 1% over and above the rise expected in the prime outer London area each year, a 32% rise. The report also points out that in the coming years, the drivers pushing prices will vary from station to station. For example, Farringdon is set to become a major transport hub as it will be the junction for Crossrail and Thameslink, the train service running from Bedford to Brighton, which is also undergoing major upgrades and is set to be completed in 2018.
At Tottenham Court Road station, the impact of regeneration around the new station is expected to have a big impact. While Crossrail will have an impact on values of property surrounding its stations, Knight Frank points out that in some cases it will also play a significant role in promoting new development. Examples of this trend include Custom House, Woolwich, and to some extent, Stratford. ‘The sheer scale of pipeline residential development surrounding Custom House station in Royal Docks and Woolwich station in Woolwich Arsenal underline how these areas are being completely overhauled,’ the report says.
Quote from PropertyCommunity.com : “The effect of the Crossrail development on house prices in London is likely to be uneven with Tottenham Court Road the strongest performer, according to new research.”
‘There are around 9,200 private residential units currently in planning or under development within a one kilometre walk of the new ticket halls. The extent to which development is bound up in the delivery of the new rail network is underlined by the close involvement of Berkeley Homes in the development of the station at Woolwich where the station will form part of the Berkeley Royal Arsenal Riverside development,’ the report explains. ‘The demand for residential units in these areas will be greatly enhanced by Crossrail, as it will enable much easier, and faster, connections across London. For example, the journey time from Custom House to Tottenham Court Road will be more than halved, while the trip from Woolwich to Canary Wharf will be cut by 10 minutes to just eight minutes,’ it adds.
The effect of Crossrail on property prices on areas being developed will be slightly different, it suggests, as the dynamics of price movements around these stations will be slightly different from stations with high levels of established stock, dictated much more by movements in the new build market. ‘Looking at Stratford, the regeneration of this area is well underway, and it already benefits from excellent transport links. But the addition of Crossrail will burnish Stratford’s status as a major transport hub, making it attractive to businesses and residents alike,’ it concludes.