The Elizabeth line effect: House prices along Crossrail skyrocket by as much as 215 per cent
With the initial launch of Crossrail imminent, it has emerged that postcodes with stations due to benefit from Crossrail (CR) have seen house prices increase by up to 215 per cent since the project was first announced, carrying a 14 per cent premium versus the wider areas.
Postcodes home to a Crossrail station have seen house prices climb by 79 per cent with the W1 postcode, home to the Tottenham Court Road and Bond Street Crossrail stations, enjoying the largest increase.
Back in July 2008, the average property price was just £725,603, but this has since climbed by 215 per cent to just shy of £2.3m today, according to research by London lettings and estate agent Benham and Reeves.
The Woolwich CR station in the SE18 postcode has seen the second largest uplift in property values, climbing by 128 per cent since the project was first announced, with the Goodmayes (116 per cent), Seven Kings (116 per cent), Romford (112 per cent), Twyford (110 per cent), Manor Park (103 per cent) and Forest Gate (102 per cent) CR stations also seeing surrounding property values climb by over 100 per cent.
Crossrail property price premiums
Not only have Crossrail house prices increased notably, but on average, they also sit 14 per cent above the average price of the wider areas in which the stations are located.
Again, Tottenham Court Road and Bond Street sit top, coming in 163 per cent and 121 per cent higher than the respective average price of property in the boroughs of Camden and Westminster.
Liverpool Street (40 per cent), Twyford (32 per cent) and Whitechapel (28 per cent) also rank amongst the Crossrail stations commanding the highest house price premiums versus the wider local area.
Crossrail affordability
There are, however, no less than 13 stations where average property values sit below that of the wider area, offering homebuyers some respective house price affordability.
Southall is home to the largest level of Crossrail affordability, coming in -27 per cent more affordable than the wider area of Ealing.
West Drayton (-17 per cent), Hayes and Harlington (-15 per cent), Brentwood (-13 per cent) and Ilford (-13 per cent) also offer some of the greatest levels of Crossrail affordability when compared to the wider area.
“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,” commented the director of Benham and Reeves, Marc von Grundherr.
He told City PM this morning: “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,” he continued.
“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,” von Grundherr concluded.