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. Crossrail is the new railway line for London and the South East which will link Maidenhead and Heathrow in the west, to Shenfield and Abbey Wood in the east. It is described as one of the most significant infrastructure projects ever undertaken in the UK.
New stations are being built at Paddington, Tottenham Court Road, Bond Street, Farringdon, Liverpool Street, Whitechapel and Canary Wharf. Now research from Lang LaSalle suggests that Crossrail will contribute to residential price increases of between 6% and 19% above already strong house price inflation for new build property along the route.
Jones Lang LaSalle expects price growth of nearly 30% on average for all central London residential development by 2018. However, areas around Crossrail stations in the west of London are likely to see a lower price impact than Tottenham Court Road, Farringdon and Canary Wharf. Mainstream prices in these areas are expected to grow by 40% between now and when trains begin running in 2018.
‘Some local residential markets will see a greater benefit from Crossrail. For example, the perennial problem with Canary Wharf has been accessibility to Heathrow. Journey times will be cut to 40 minutes and convenience greatly improved for both employment and residential,’ said Adam Challis, head of Residential Research at Jones Lang LaSalle. ‘Farringdon will become a key transport connection being only one stop to Kings Cross/St Pancras International. Given that it is not even on the Central line at the moment, Crossrail will significantly increase its relevance,’ he explained.
‘Tottenham Court Road is the strongest performer in our research. This location is undergoing major regeneration made viable by Crossrail, with public realm improvements and new office and residential development. The East end of Oxford Street should re-join the area as a destination retail location,’ he said. ‘Almacantar’s plans for Centre Point, if approved, will generate new residential price records in the local market. This is all happening on the edge of the West End, the most expensive real estate market in the world,’ added Challis.
Meanwhile, the Mayor of London, Boris Johnson, is urging affordable housing providers to step forward and claim a share of £100 million in funding to boost the supply of much needed homes in the capital. The new investment secured by the Mayor from the government forms the latest part of his pledge to safeguard the capital’s competitiveness by improving the housing options of working Londoners, as well as boosting jobs in the construction industry.
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The money, which is additional to the first £100 million Housing Covenant funding announced by the Mayor in September, will be targeted specifically towards housing providers who commit to starting construction on site by March 2015 at the latest. Developers, local authorities, charities and private organisations are all invited to bid for funding, which will be used to deliver affordable homes to own. The Mayor also wants to hear from organisations committed to bringing empty properties or under used commercial units back into use as affordable homes or to help London boroughs tackle homelessness – organisations interested in submitting bids in London will need to do so by 30 April.
‘This latest tranche of cash is another fantastic opportunity for housing providers in the capital to deliver the homes that this city desperately needs. Whether it’s for affordable homes to own, or to make better use of properties that lie empty or under used, the fund will help working Londoners across the capital and create valuable jobs in construction,’ said Johnson.