Crossrail property values to increase by 15 per cent

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14 Oct 2014

Crossrail property values to increase by 15 per cent

Author: Jon Roberts

Property values in the areas surrounding proposed Crossrail stations will increase by 15% over the next five years, according to the latest evidence from property consultancy company CBRE.

House price increases of around 2.9% per annum are forecast between Maidenhead and Acton, or around £50,000 on average per property, over the five year period. This is roughly four times the average increase in East London, which is likely to be closer to 1.7% per annum, or £21,000, over the five years.

Following Romans’ report on Crossrail’s effect on property prices earlier in the year, Jon Roberts, Residential Sales Director at Romans, comments on the new findings: I think in some areas the increase will be higher than 2.9% in the next year. The new connection into London will be very appealing to buyers, and with demand continuing to outstrip supply property prices will continue to rise.

“The investment market, particularly in Reading, is thriving at the moment and Crossrail is definitely bringing more savvy investors into the town. Over the last 12 months we’ve seen many developers start to react to the demand and build new apartments in and around Reading; this should help to satisfy the demand in the coming years.”

Romans predicts properties within walking distance of the main railway stations will increase in value substantially, particular those situated within the RG1 postcode. Crossrail plans are also having a direct impact on the regeneration of surrounding areas, including; Abbey Wood, Woolwich, Southall and Maidenhead. This will, in turn, have a positive impact on property values in these towns.

The property market impacts of any rail scheme diminish in influence the further property is located from the station, according to a 2014 study by the property consultancy company GVA. For example, for every 250m distance from the station entrance, the impact on a property’s value will decrease by 1.9% (of the additional property value increase).

“We're already seeing an influx in buyers moving to Reading from London, looking for more affordable housing in this popular commuter town” comments Jon. “The closer the property is to a station entrance the more demand there will be from tenants and buyers.”

With more tenants moving to the area there will be some great opportunities for property investors. Jon recommends that investors keep an eye out for opportunities now, as house prices continue to rise.

Crossrail will revolutionise travel across London and the South East and for the first time there will be a direct connection between all of London's main business centres, linking Heathrow with Paddington, the West End, the City and Canary Wharf. The faster train times will bring 1.5 million people within 45 minutes of the capital's business centres and 200 million people are expected to travel on Crossrail each year.

If you would like advice on which type of properties to buy for investment and want to know more about the investment potential in areas surrounding the Crossrail route, please get in touch with Romans' Investment Portfolio team to set up a meeting with one of their investment experts.

 

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