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With many buy to let property investors looking to benefit from property price growth on the Crossrail route, delays in the project have some worried about the effect on investments.
London letting and sales agent, Benham and Reeves, has looked at what impact the development has had on house prices along the route, and how this growth has been impacted by delays in the project.
They looked at the average house price in the immediate areas surrounding each Crossrail station since it was approved over a decade ago and how these compare to the wider area each station is located within. They also looked at the same data since the first delays were announced last year and what impact these delays have had on Crossrail price growth since.
The data shows that when approved in the midst of the financial crash back in 2008, the average house price surrounding Crossrail stations sat at £330,770. Today, these house prices have jumped 83.9 per cent to an average of £655,103, compared to a jump of just 56.7 per cent across the wider areas these stations are located in where house prices average just £472,486.
The largest increase has been surrounding Tottenham Court Road and Bond Street, where property prices had slumped to just over £700,000 during the market crash but have rebounded by some 343.5 per cent since to hit an average of over £3,000,000 today.
Since the Delays
However, the latest announcement that Crossrail won’t be ready until 2021 is the latest in a string of delays to the project, with the first of these announced in September 2018.
Despite these delays, house prices surrounding many of the Crossrail stations have continued to outperform the wider market increasing by an average of 2.1 per cent over the last year, while the wider areas in which they’re located have struggled with political uncertainty and seen an average drop of -1.9 per cent.
The largest increases over the last year have again been around Tottenham Court Road and Bond Street, although Whitechapel has seen the third largest rate of growth in the last year, with prices up 27.3 per cent compared to a drop of -2.3 per cent across Tower Hamlets as a whole.
Based on the previous data on Crossrail house price growth, Benham and Reeves forecast that house prices surrounding each of these stations could increase by a further 4.7 per cent by the time the project is hopefully delivered in 2021.
Director of Benham and Reeves, Marc von Grundherr, commented: ‘It’s clear that despite the ongoing delays to its launch, the future benefits of Crossrail continue to stimulate price growth at a top level in areas surrounding a station, although there are a handful of areas where Crossrail house price growth has lagged behind the wider area over the last decade.
‘This is of course, due to the fact that while price growth has accelerated since 2008, some areas have now come off the boil due to their ever increasing price tag and more recently due to wider Brexit uncertainty and a consistent string of delays to the project.
‘That said, the top line figures suggest that despite these delays, house prices surrounding the majority of Crossrail stations continue to outperform the wider London market.’