It has recently been confirmed that Crossrail 2, the second stage of the new London transport project, is coming to the capital. So where should you invest along the new line?
The £27 billion project is now well underway, which will link Surrey to Hertfordshire via key London destinations. The scheme also promises to bring 200,000 new homes to areas in and around the capital.
Although the north-south line isn’t set to launch until 2030, now is a great time to beat the crowds and purchase a profitable investment property along the route. As with Crossrail 1, house prices are expected to soar significantly and quickly in the near future.
London estate agent Portico has picked out a number of areas where landlords should consider buying:
Battersea, the home of Clapham Junction station, is already undergoing a huge regeneration project, with two new stations planned to be built at Nine Elms (London’s largest regeneration zone) and Battersea Power Station by 2020. The long-term plan is to extend the Northern line even further to Clapham Junction, which would likely push up prices in the area even further.
Battersea is already a popular spot with tenants, investors and homebuyers, but demand is expected to strengthen and house prices to increase as a result of Crossrail 2. The new train line would cut journey times into Victoria and Waterloo to around just five minutes, and further encourage regeneration around the station.
Portico expects this regeneration to have a knock-on effect on surrounding areas too, such as Wandsworth Town, where people currently commute to Vauxhall or Waterloo to change onto the Tube into central London. Crossrail 2 would take them straight into central London, to key hubs like Tottenham Court Road.
The estate agent expects Wood Green to be one of the biggest beneficiaries of Crossrail 2, as it enjoys a fairly central Zone 3 status and is currently undergoing regeneration.
The agent reports that it has seen an increasing number of homebuyers searching for more affordable properties in Zone 3 spots, and improving transport links, such as Crossrail 2, and London’s ever growing population, will only strengthen this demand.
The area’s property hotspot status, however, is dependent on whether it becomes a Crossrail 2 station. Currently, Transport for London (TfL) is undecided as to whether the line should run through Wood Green, or through Turnpike Lane and Alexandra Palace.
Wood Green would make a better property hotspot, however, as it offers more affordable homes than the other locations. Additionally, Crossrail 2’s regeneration plans – a new public square around the station, thousands of affordable new homes, a new shopping centre and cinema, more high street shops and employment space, and a transformed pedestrian and cycle route – will make the area an extremely desirable place to live and work.
Although Tottenham Hale is a little rough around the edges, it attracts huge numbers of first time buyers, as it is one of the most affordable places to live and rent in London. A one-bedroom property in the area costs around £300,000, and you can get into the City in less than 15 minutes on the Tube. Regeneration is also starting to smarten up the area.
Tottenham Hale is already undergoing a transport overhaul, with a £110m investment on a new Tube, rail and bus station, road network improvements and public realm works, which will be completed by 2017. As a proposed Crossrail 2 spot, it is expected that property prices and its popularity will only continue rising.
Crossrail 2 would also improve the area’s transport links, with between ten and 12 trains per hour in each direction, going directly to and across central London.
A Crossrail 2 station has been proposed at New Southgate, which would cut journey times into central London and the West End, and trigger regeneration in the area, by providing the infrastructure needed to build new homes and create more jobs.
New Southgate is a family-friendly, residential suburb with lots of green space and good schools. Crossrail 2 would undoubtedly bring even more families to the area who want to be well connected to the countryside, central London, and the North Circular and M25.
Portico also believes that Crossrail 2 would bring neighbouring areas outside of the North and South Circular, and some outside of the M25, up in value, as they would be significantly better connected. Areas such as Enfield Lock and Waltham Cross in the north, and Hampton and Chessington in the south currently rely on just one train, but Crossrail 2 would connect them to the larger London network and make them more much desirable to investors and homebuyers alike.
It is yet to be confirmed whether Crossrail 2 will go through Balham or Tooting Broadway. However, whichever area is chosen is likely to see a boost in terms of regeneration and house prices.
The new speedy service would cut journey times in central London significantly – appealing to both families and young professionals who want a quick commute and affordable housing, compared to nearby Battersea and Clapham.
Portico believes that Tooting would benefit more from Crossrail 2, as it currently relies solely on the Tube, while Balham offers the Tube and train, so is already more accessible. A decision will be made this summer, so keep your eyes out for the new hotspots!
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