House prices on the Crossrail route could increase by up to 25% in the next decade, according to new research.
The study reveals that the rail service, from Maidenhead and Heathrow in the west to Shenfield and Abbey Wood in the east, could add £5.5 billion to property prices by 2021.
The research looked at commercial and residential developments within one kilometre of new stations along the route.
However, Matthew Fine, of Hunters estate agents in Marylebone, believes the increase is more likely to be closer to 10%.
The study, conducted by property consultancy GVA for Crossrail, found that property values in areas such as Ealing Broadway, Southall, Hayes and Harlingon, Farringdon, Whitechapel, Custom House, Woolwich and Abbey Wood could grow by up to 25%.
Meanwhile, towns at either end of the route, in Berkshire and Essex, could experience price rises of 20% over the baseline trend.
But Fine says this is too optimistic: “I can’t see it, what with the way the current market is running at and the economy… house prices are going to be squeezed over the next five to ten years.”1
The report states that developers will build 57,000 new homes and 3.25m square metres of commercial space close to the new stations.
The author of the report, Mike Taylor, says that Crossrail is expected to drive prices up by an average of 20%, a figure arrived at from “wide-ranging research”1 as well as analysis of other infrastructure projects in the UK and overseas.
A Thames Valley Chamber of Commerce spokesperson says the project is already playing a key role in encouraging foreign firms to invest in the area.
They explain: “Foreign companies, and firms outside the area, are currently looking at moving to the Thames Valley and Crossrail is a key factor in this. As well as providing benefits for businesses and house prices, it will give a general boost to the local economy.”1
The service will bring eight new stations to central London and the Docklands, and the route will be almost 120km long.
Up to 24 trains an hour will operate in central areas between Paddington and Whitechapel during peak periods, with each train able to carry 1,500 passengers.
Services are set to commence in 2018.