Property value is influenced by many characteristics such as amenities, environmental attributes and local transport. The House Price Guru blog aims to explore effects of these seen in local house price data.
In this blog post we are exploring the effects of the Crossrail project.
Several studies have shown that infrastructure projects can have significant effects on house prices. Crossrail, to be known as the Elizabeth line, is one such project, a new rail link crossing London from West to East. Stretching from Reading and Heathrow through Ealing Broadway, Padddington and many more stops out to Abbey Wood and Shenfield.
The route for Crossrail was confirmed in the Crossrail Act 2008 but inititally only reaching out to Maidenhead in the West. It wasn't until March of 2014 that an extension out to Reading was confirmed bringing the number of stations to 41.
Early on there were forecasts of property price increases, one of 43% in Reading. Between April 2014 and April 2016 Reading saw a house price growth of 33% and Taplow, the next stop on the line, a 28% increase.
Checking out some local examples we can view what appears to be a direct impact on property prices. Like below:
In the case of RG4 8HN above - as in many areas - the prices of houses stalled after the 2008 financial crash. However, soon after the announcement of the Crossrail extension to Reading (in March 2014) there is a large jump in prices and further increases in prices in the months and years following.
It is difficult to predict what will happen to house prices in the vicinity of the new stations once the Elizabeth line fully opens. Have the increases to date taken into account all of the benefit that the line will bring? Or are they likely to continue to increase at a faster rate than the surrounding regional areas?
We'll have to wait a bit longer to find out as the opening has been pushed back to 2021.