The Crossrail effect: high-speed rail network is set to add £5.5 billion to property values

The east-west Crossrail line is set to slash journey times across London - and the rail route is already creating homes hotspots and boosting property prices along the way.
Crossrail isn't due to launch until 2018, but the high-speed rail service is already boosting house prices along its route.

According to the company's land and property director, Ian Lindsay, Crossrail is set to add £5.5 billion to values. The latest prediction comes as 26 miles of tunnelling beneath the capital is completed, along with the first homes above a Crossrail station. 

The line, from Reading in the west to Shenfield and Abbey Wood in the east, will cut journey times to London significantly and increase the capacity of the Tube by 10 per cent. 

"But the big change is in the built environment and areas around the stations," says Hamptons International's head of research, Johnny Morris.

WATCH: LONDON PROPERTY EXPERTS REVEAL THE CROSSRAIL HOMES HOTSPOTS
 


For the first time in Britain, regeneration is happening in tandem with the construction of a new transport system, with 3.3 millionsq ft of residental, office and retail space planned above Crossrail stations. 

"If you go back in time, railway has always created regeneration... as the Tube grew so did London, and this Crossrail programme will go through exactly the same experience again," says Crossrail chairman Sir Terry Morgan.

A total of 57,000 new homes will be built along the route, while councils are upgrading town centres and forward-thinking home buyers and savvy investors are starting to focus on the neighbourhoods being thrown into the spotlight.

Woolwich in south-east London is set to become a major transport hub. Woolwich Crossrail station is being built within 88-acre Royal Arsenal Riverside, a Berkeley Homes development that will have 5,000 new homes when complete in 2030. 

More than a thousand of these homes will be above the station, and the first phase has been built on the east side. Ninety per cent of the 631 apartments at Cannon Square have already been sold off-plan. The remaining three-bedroom, two-bathroom flats start at £647,500 and rise to £875,000 for a duplex penthouse. 

Karl Whiteman, managing director of Berkeley Homes (East Thames) says: “Crossrail is without doubt the most important new transport infrastructure for London and the South-East for a generation.  The new Crossrail station will make Woolwich one of the best-connected parts of the capital." 

Meanwhile, Crossrail has planning permission to build nearly 400 homes at Armourer's Court, in five buildings based around a landscaped garden on the west side of the station. 

Since Crossrail was approved in 2008, the value of homes around the stations along its route has grown by 20 per cent more than underlying capital appreciation in London and the South-East, according to property consultant CBRE.

House prices are expected to rise even further - CBRE predicts the Crossrail factor will add a further 13 per cent, or £60,000, over and above wider growth by 2018. This will be closer to 20 per cent in London, typically adding £100,000 to the value of each property.

READ MORE: 40 FACTS YOU NEED TO KNOW ABOUT CROSSRAIL
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