Crossrail is Europe’s largest infrastructure project and stretches from Reading to Shenfield through the centre of London. Leading online estate agent Emoov.co.uk has produced figures highlighting the Crossrail effect on property prices and predicts likely increases once the new service is operational.
Tottenham Court Road has long been portrayed of the epicentre of the Crossrail 1 project with huge amounts of development in the area and it is also one of the main central stations on the proposed second phase. Tottenham Court Road is the star performer for the Crossrail effect with prices now over 4 times higher than a decade ago. An average flat in the area in 2004 could have been purchased for £240k but will now set you back over a million pounds, a rise of 439%.
Outside of London prices have been on the up, with Reading so far recording a modest 11% increase in the price of a flat since 2014. However, looking at bigger properties prices in the area, these have increased by 63% for a semi-detached and 40% for a detached property. Emoov.co.uk predicts Reading as one of the country’s hottest property areas over the next few years and predicts prices in the area to grow as much as 50% over 6 years. For the average flat in the area this means a rise of near to £90,000 by 2020.
To the east of London, Essex is booming with the capital overflow and extension to Crossrail into the area means some areas of Essex have seen rises of 50% over the past 10 years. One of the biggest rises has been detached properties in Brentwood doubling in value to £800,000. The average flat in Brentwood back in 2004 was valued at £155k, this is predicted to be worth double by 2020 by Emoov.co.uk. Forest Gate could see one of the largest increases topping £100,000 over the next 6 years.
Now focusing west, with the expansion of Heathrow Airport all but guaranteed there is going to be a shake-up in property prices in the local are. Prices are still expected to grow over the next decade thanks to the continued investment into the local infrastructure. Maidenhead, Slough, Iver, Burnham and Langley avoid being under the flight path of Heathrow but with the proximately of the Airport and Crossrail link Emoov predicted to see flat prices increase by up to £150k by 2020.
Taking a look at the Crossrail 2 proposal, property investors are sure to be interested in the potential gamble of buying property now before any decision has been confirmed. Savvy investors or first time buyers looking to make money from a flat should look no further than Dalston Junction. Over recent years Dalston has seen the benefit from both sides of the Kingsland Road, with Stoke Newington and Hackney seeing substantial growth in prices.
Dalston offers a lucrative opportunity to make a potential £30,000 a year until 2020. A decade ago a flat in Dalston Junction cost just under £190k, this is now sky rocketed to £450k, a rise of 141%. Emoov.co.uk have predicted more price rise in the area up 40% over the next 6 years meaning a flat in the area in 2020 will cost over £630,000. Neighbouring Hackney has gone from £184k in 2004 and by 2020 flat prices will be £600,000. Hackney has seen the biggest growth in price outside zone 1 since 2004 with prices up over 220%. Hackney has outperformed other local areas which didn’t benefit from Olympic redevelopment like Seven Sisters. Prices here have gone up 60% in comparison however if this area is confirmed within the second phase of Crossrail, prices will be on the up and predicted to rise by £100k to the average flat by the time Spurs finish their first season in the new White Hart Lane.
Russell Quirk, CEO of online estate agent Emoov.co.uk commented “The London market is currently cooling however there are still pockets of the capital and south east which represent fantastic opportunities for property investment. Crossrail locations can expect significantly elevated increases in prices in the coming years compared to non-Crossrail areas. ”