The long-awaited Crossrail line is finally set to launch on 24 May 2022. It will connect the east and west of the capital, as well as the commuter towns in these parts of London.
Benham and Reeves reveal that houses in postcodes close to stations on the Crossrail line have increased by 79% since the Crossrail project was announced in July 2008.
By monitoring house price growth and comparing these postcodes to wider local authorities in which they are located, the London lettings and estate agent were able to accumulate these findings.
House Price Growth and affordability
Properties with the W1 postcode, close to Tottenham Court Road and Bond Street Crossrail stations, have experienced the largest house price hikes since the project was announced.
In July 2008 buyers could expect to pay £725,603 for a home. Currently, homes under this postcode have risen by 215% pricing the homes around £2.3 million.
Properties in the SE18 postcode, set to benefit from The Woolwich Crossrail station, have increased by 128% since the project was first announced.
The value of homes near the following Crossrail stations have climbed by more than 100%: Goodmayes (116%), Seven Kings (116%), Romford (112%), Twyford (110%), Manor Park (103%), and Forest Gate (102%).
Despite the extortionate house price increases, properties near 13 Crossrail stations offer homebuyers house price affordability.
Southall is -27% more affordable than the wider area of Ealing. West Drayton (-17%), Hayes and Harlington (-15%), Brentwood (-13%), and Ilford (-13%) all benefit from the Crossrail line but are also affordable in comparison to the wider area.
Director of Benham and Reeves, Marc von Grundherr, concludes: “Despite the extensive delays to its actual delivery, Crossrail has been the gift that keeps on giving for homeowners living within arm’s reach of a Crossrail station, with property values climbing considerably since it was first announced back in 2008.”
“We don’t expect this influence to subside anytime soon and house price growth surrounding these stations is likely to climb further still until the project itself has come to full fruition.”
“Once it has and homebuyers know completely where they stand with the service available to them, this upward growth may well subside, however, these stations are likely to continue commanding a healthy premium in the same way a good tube link does in today’s market.”
“The good news is there are still a number of stations where house prices surrounding a Crossrail station remain below that of the wider area and these make an ideal area of investment for savvy buyers with an eye on future house price appreciation.”