It is now less than three years until the first Crossrail trains will run through the central section of the Queen Elizabeth Line (or 'the Lizard' as some Londoners are calling it), and less than four years until the full Crossrail service will become fully operational. As the project heads towards completion, house prices along the line continue to accelerate.
Updated research has shown that the property prices along the line are 16pc higher than the Greater London average and 7pc higher than property located by a station which is not connected to the new high speed service, which will run from Reading to Shenfield and cut journey times into London hubs such as Canary Wharf, Paddington and Bond Street.
Property group JLL launched an interactive tool and set of forecasts looking at house prices along the line back in January 2015. Now, the company has updated its predictions for house price and rental growth over the next four years in areas near Crossrail stations, to take into account a the series of stamp duty changes and the pronounced slowdown in the central London property market. The new forecasts suggest that homeowners in Woolwich will be the greatest beneficiaries of the infrastructure project.
The graphic below shows train stations by house prices and house price growth, rents and rental growth, just select one of the drop down options to see how each area performs.
Woolwich, West Drayton, Whitechapel and Ealing Broadway are the most advantageous locations to develop apartments for sale. Woolwich is forecast to experience the highest house price growth along the Crossrail route, with prices expected to rise by 39pc, while West Drayton, Whitechapel, Slough, Abbey Wood and Iver are all set to see prices rise by more than 33pc over the next five years. "With many locations already benefiting from higher property values, as well as new development and regeneration, buying activity is expected to step up another gear in the run up to the line’s opening," said Neil Chegwidden, residential research director at JLL.
“Crossrail continues to drive value growth right across its length. In the current market, what is becoming clear is the additional benefit it brings to some of the lower value locations along the route. It is supporting regeneration through improved accessibility and, as a result, offers a longer-term capital growth potential that may be harder to identify in central zones," he added.
However due to the serial attack on luxury property transactions in the form of stamp duty hikes by the Chancellor, some predictions have been tempered since JLL's first forecast. Property values were expected to rise by 34pc by 2020 around Bond Street. This figure has been pulled back to eight per cent for March 2016 to 2020, rather than January 2015 to 2020. Which shows the extent of the slowdown in high-end, central London.
Chegwidden also stated that Crossrail is likely to be the catalyst for Build to Rent apartment schemes. "We predict that the most beneficial stations around which to develop product for rent are Whitechapel, Woolwich, Ealing Broadway, Acton, Slough and West Drayton, with rental growth over the next five years forecast to be strongest in Whitechapel, Woolwich, Ealing Broadway, West Ealing, Acton and Hanwell.”
The research also identifies locations which are worth a closer look, stations which some housebuilders may not immediately consider viable development opportunities. These are headed by Iver, Langley and Slough and, we believe, even longer-term, untapped potential exists at Ilford, Forest Gate, Abbey Wood, Slough and Southall, amongst others.
This is part of a series of how Crossrail will affect London's property prices. Check back for Crossrail 2 next week.