taboola tracking pixel
Property Market

How will Crossrail affect property prices?

23 August 2018 • British Pearl

Crossrail conducted a study in 2012, predicting that by 2021, property prices close to new stations would increase by 25% more than the average price increase in central London, and 20% more in the suburbs. Transport infrastructure is a factor considered by those looking to buy, sell or rent out properties, so how are property prices surrounding the 40 stations faring?

The construction of Europe's largest travel and infrastructure project is reaching its final stage, as the stations get fitted with electrical and mechanical equipment. Trains are being tested between Abbey Wood and Canary Wharf. The new 'Elizabeth Line' will connect 41 stations, 10 of them new, from Reading and Heathrow in the West all the way to Shenfield and Abbey Wood in the East, covering Acton, Paddington, Bond Street and Whitechapel in between. After more than a decade of planning and construction, the £14.8 billion project is expected to be delivered on time and within budget in December 2019, with some services rolling out by the end of this year.

Those who invested early enough in areas along the line have already enjoyed the financial benefits, dubbed "The Crossrail Effect". House prices within a mile of any of the stations have increased by a staggering 66% since 2009, 15% more than the rest of London. In seven years, prices in Langley, Berkshire, have increased by 72.6% to a £360,000 average, whilst Bond Street's have increased by 165.9% to £3.1m. Whitechapel and Woolwich prices have doubled since 2007, with the latter also enjoying regeneration due to the improved infrastructure.

British Pearl’s first property on the platform is a 4 minute drive from one of Crossrail's stops, Acton Main Line Station. Property prices in close proximity to Acton Main Line Station have jumped by an enormous 82% over the past 7 years. The British Pearl property was bought for £398,000 and has been recently revalued independently by a RICS valuer at £500,000, due to purchasing below market value and then being refurbished. The Valuation Report is available on the platform. Its future occupants will be able to travel from Acton Mainline Station to Bond Street in 8 minutes. There is no question that Crossrail has given far reaching locations access to central London, and a short commute in London is valuable.

Once Crossrail officially launches, there could potentially be even more price growth, as people realise they can get more value for money and still have a 10-minute commute. Property expert Rob Bence explains that there are "two spikes – one after the initial announcement [of a Crossrail station opening] and one on completion."

There are now discussions surrounding a possible future extension from Abbey Wood to Ebbsfleet. Mayor Sadiq Khan believes that this extension may propel the construction of 55,000 new homes and creation of 50,000 new jobs in Bexley and Kent. Property prices in and around London are clearly reacting to Crossrail and, with optimism continuing well into the future, there could still be time to reap the rewards from the brand new Elizabeth Line.

Sources

  1. City of London / The Impact of Crossrail
  2. The Guardian / What the distance from the station does to the price of your house
  3. City AM / Crossrail construction
  4. Homes and Property / Where to buy along the Elizabeth line
  5. CNN / The impact of the Elizabeth line on London house prices
  6. British Pearl / Acton
  7. Homes and Property / The Crossrail map for house hunters
  8. Homes and Property /Crossrail route broken down for house hunters
  9. Telegraph / Crossrail effect on London property market
  10. Ian Visits / Crossrail extension

Join British Pearl today.
Start building your own portfolio.

Subscribe

to our newsletter

Sign up to receive details of investment opportunities and special offers as well as commentary on the property market and crowd investing.

Your capital is at risk Investing in property involves risk. The value of your investment can go down as well as up and historic performance is not a guide for future performance. Any projections of future performance are based on all information known at the time of share investment or loan, and internal calculations and opinions of British Pearl. These are subject to change and are not guarantees and should not be relied upon as such. Risks include the total loss of your share investment or loan, variable rental income due to property not being rented or a depressed rental market, and inability to sell your share investment or loan due to lack of a buyer. Investing with British Pearl falls outside the remit of the Financial Services Compensation Scheme. Please refer to the Key Risks section of this site for a more comprehensive description of the risks involved.

British Pearl ® is the trading name of British Pearl Limited (Company No. 7151774), a company authorised and regulated by the Financial Conduct Authority (Register No. 674693) and British Pearl Finance Limited (Company No. 10575280 and Register No. 770867), which is an appointed representative of British Pearl Limited. Both companies are wholly owned subsidiaries of British Pearl Group Limited (Company No. 9701436) and all are registered in England and Wales at 4th Floor, 7-10 Chandos Street, Cavendish Square, London, W1G 9DQ