Greater London, a global city and Europe’s most cosmopolitan capital. Between 1997 to 2012 London’s economy more than doubled, growing from £147 billion to £309 billion – this continues to grow. In the last few years, the outskirts of London became prime locations to accommodate the severe demand for housing in the capital.
As Property Investment experts, we wanted to share some key facts and stats on an emerging location, Sunbury on Thames, in Greater London to keep you ahead of the curve.
What is it?
Crossrail is the new high frequency, high capacity railway for London and the South East, also known as the Elizabeth Line. The current line is due for completion and will stretch from Reading, through Central London and to rural Essex.
Crossrail 2 is the newly announced extension of the Elizabeth line, linking the suburban railway network from Tottenham Hale to Wimbledon via a new tunnel through the centre of the capital. The line will stretch from Broxbourne in Hertfordshire (north) and continue through the heart of the capital to Surrey (south). In comparison to its counterpart, Crossrail 1 will connect the East and West of Greater London, with Crossrail 2 focusing on the North & South – splitting the capital and its suburbs into 4 sections.
The Crossrail effect
Since the launch of Crossrail (the Elizabeth Line) due to be completed in 2019, connecting London with Berkshire, Buckinghamshire and Essex; property prices have shown growth rates of up to 50% in some cases this has come to be known as the ‘Crossrail effect’. A fantastic example of this would be the Romford area of Essex, the average property in vicinity of the station has risen from £241,027 to £359,058, which is an increase of 48.9pc.
What does this mean for investors?
Historically, areas in which Crossrail runs, have experienced sharp growth in property prices. Investing into areas that will be included on the Crossrail 1 and 2 lines will mean a low price point and continual growth year on year til the lines full completion – meaning good news for buy-to-let investors targeting commuting families and young professionals. A great example of this is Brentwood, in the east of England, where the average price of a three-bedroom semi-detached family home in Brentwood is £500,000, compared to £325,000 in 2013. In the last year alone, prices have risen by 11 per cent, while other areas in the East of England only grew by 6.4 per cent, according to Rightmove’s House Price Index.
Fionnuala Earley, residential research director at Hamptons International, says: “In the long-term, both Crossrail 1 and 2 will be a significant driver of regeneration and new development, acting as an accelerant to kick start long planned schemes. Locations close to both existing and new Crossrail stations have become the focal point of major regeneration projects across the route outside of central London”
Areas to watch
With developers rushing to the London commuter belts to take advantage of the projected property price increase, we have identified areas which we expect to benefit from the “Crossrail effect” :