Published by: StrettonsThe impact of the Crossrail tunnel is surfacing as we move closer to seeing trains on the Elizabeth Line. Europe’s largest construction project is scheduled to become fully operational in December 2019, and it will have a transformative effect on London, but especially on the northeast and east London.
By 2018, 40 Crossrail stations will exist across London with ten new stations being created at Abbey Wood, Canary Wharf, Bond Street, Farringdon, Custom House, Liverpool Street, Paddington, Tottenham Court Road, Whitechapel and Woolwich. This will deliver a 10% increase in capacity on London’s rail and underground network, support 55,000 new jobs, be instrumental in helping to deliver 57,000 new homes and bring an extra 1.5 million people to within a 45-minute commute of central London.
We have seen a significant change in north and north-east London over the last ten years, particularly around the 2012 Olympic games, but in our opinion, Crossrail has the potential to deliver the widest reaching change of recent times.
This improved connectivity will bring regeneration to boroughs within the areas we cover, such as Redbridge, which until the advent of Crossrail have not seen the same level of regeneration benefits of other areas of London. The ‘Lizzie Line’ as it is being coined, will create jobs, retail and housing opportunities throughout the north-east London boroughs.
Rising House Prices
As expected, with increased connectivity comes higher house prices. House prices near stations along the Elizabeth Line have risen on average by 48% over ten years, compared with a 25% rise in England over the same period. Cuts in travelling time and regeneration have been the driving force behind the growth in property prices. Whilst the most dramatic increases are to be found in central London, such as Tottenham Court Road which boasts an increase of 65.99% over 10 years and average property prices of £1,705,486, there are boroughs on the Crossrail route where despite above average price hikes, property is still comparatively affordable because of its lower starting value. For example, in Goodmayes the average property price is £355,512, a rise of 39.64% in ten years when property values averaged £254,592. In Gidea Park an average property price is £460,131 a rise of 43.02% over ten years.
Over the years we have sold properties along most of the length of the Elizabeth Line but picking an example location such as Romford which is betwixt the City and Shenfield at the end of the line in April 2012 we sold a modernised 4-bed semi with garage in Mawney Road RM7 (Lot 53 O) for £250,000 where current prices for similar properties in the RM7 area are comfortable about the £425,000 level and so approaching 50% above 2015 prices.
In contrast, further down the line towards the City, in July 2012 we sold a 3-bed terraced house in Mortlake Road, Ilford (Lot 34) in need of modernisation for £198,000 and in March this year sold a similar house (Lot 3) also in need of modernisation for £278,500 - a 40% increase in less than five years.”
New Residential Developments
The demand for accommodation close to the new line has already brought activity around new developments and will continue to do so as the need grows. These developments will play a critical role in helping to address London’s housing shortage, although for family purchasers and renters affordability will remain an issue. However, such developments and the investment in regeneration and infrastructures of the boroughs through which the line passes will attract new residents, and create a positive upturn in employment and services.