"Although the impact of Crossrail on the property market has been long heralded, this research is a solid reminder of how stations along the route have outperformed non-Crossrail locations over the past decade."
The data, carried out by analysts at Property Partner, shows that 60% of areas around stations on the new Elizabeth line – due to be completed by the end of next year – have seen higher than average house price rises in the past ten years.
Some 24 out of 40 locations near the Crossrail stations have benefitted from above average rises compared to property price increases in the rest of the South East of England since 2007 (an average of 41%) when the project was first approved. The 73-mile line, providing a high-frequency commuter and suburban train service, will link parts of Berkshire and Buckinghamshire, via central London, to Essex and south-east London.
For example, the current average house value in Reading – which boasts the outermost station on the western part of the new line – is £425,804, an increase in price of more than a third (35.7%) over the past decade. As you edge closer into London, areas like Hanwell (59.21%), West Ealing (56.82%), Ealing Broadway (57.48%) and Acton Mainline (57.70%) have experienced meteoric property price growth.
Over the past decade, all 40 stations along the new Elizabeth line have achieved nearly double the average house price rise (almost 25%) in England – the average property price increase is 48% over ten years, to a current value of more than £530,000.
Unsurprisingly, the areas around central London stations Tottenham Court Road and Bond Street have seen the biggest rises (of almost 66% each) with average property values now at more than £1.7 million. But price growth is predicted to slow down in 2017 partly due to uncertainty over Brexit. Prime central London has already been falling in value due to lack of affordability, oversupply of high-end flats and stamp duty changes.
Meanwhile, more affordable areas in South East London have also experienced whopping increases - a 61% rise to £289,468 in the case of Abbey Wood over the past decade but demand is expected to continue, particularly when Crossrail is fully up and running.
Dan Gandesha, CEO of Property Partner, comments: "Although the impact of Crossrail on the property market has been long heralded, this research is a solid reminder of how stations along the route have outperformed non-Crossrail locations over the past decade.
Dramatic cuts in commuting times and substantial regeneration of some of the areas along the Elizabeth line have been the main appeal driving price growth.
But prices near many Crossrail locations are still forecast to keep rising. Demand from owner-occupiers and tenants will only intensify once the projects are complete. For example, it currently takes 35 minutes to travel from Ealing Broadway to Liverpool Street station (London’s ‘Square Mile’). That time will be almost halved when Crossrail arrives.
The Woolwich and Abbey Wood areas are also interesting case studies. The huge scale of their regeneration projects, combined with slashing of travel times to Canary Wharf (8 minutes from Woolwich), means that real change is likely to take place over the next few years.”
