How Will Crossrail Change the East London Property Market?
Residents of East London have been watching Crossrail plans take shape since 2009. Now, as the project crawls towards fruition, the question on everyone’s lips is, how will it affect the East London property market? “The Crossrail effect” has been banded around across the capital but what does this mean in real financial terms? With less than a year to go until the project’s completion, it is time to establish exactly what its arrival will mean for the East London property market.
The Crossrail Effect
The Crossrail effect is already visible in parts of East London. Houses within a 15-minute walk of Crossrail stations have seen their values rocket in comparison to those near stations unaffected by the Crossrail development. By the time the project is completed in December 2018, the Crossrail effect will have added £35 billion to property values across the city.
This is already apparent in some areas in the East of the capital. Properties in Stratford are worth almost one and a half times their values in 2013. Ilford, Seven Kings and Goodmayes property prices have all increased by nearly as much over the same five-year period – and properties in Whitechapel have increased by even more.
Crossrail as a stabilising factor
With so much uncertainty in the capital’s property market surrounding the country’s Brexit negotiations, Crossrail could provide much-needed stability. Areas served by strong transport links have proven resilient to dips in the property market in the past. Given that Crossrail will carry 200 million commuters annually, its stabilising effect should not be underestimated.
It will have a modernising effect
In areas like Abbey Wood and Woolwich, Crossrail’s arrival will likely trigger a development goldrush as developers try to cash in on the newly improved connectivity. Expect newer, modern apartments to enter the market, as well as commercial properties as businesses migrate to the areas to serve a shifting demographic.
There are already large-scale development projects underway. 5,000 new homes are under construction around the Royal Arsenal site in Woolwich, one of the largest development projects in Europe. There are also plans for 245 new apartments at Abbey Place, next to the Abbey Wood Crossrail Station, and a further 1,500 new properties in the wider Abbey Wood area. Expect house prices in Abbey Wood and Woolwich to soar as the area undergoes gentrification and a newer, more affluent demographic move to the area.
Rental prices will also rise
Crossrail’s construction is also making the East London property market a target for London’s buy-to-let investors. Whitechapel, for example, is a prime candidate. Its proximity to Queen Mary University and Royal London Hospital makes it attractive to London’s rental demographics of students and young professionals, and the arrival of Crossrail will only increase the areas desirability. Rental prices in Whitechapel are already increasing.
Crossrail’s impact on the East London property market has already been significant. However, once it is fully operational and the benefits are in full effect, it is possible property prices will rise even more. Its effects on areas like Woolwich and Abbey Wood cannot be overstated. Residents can also take comfort in the project’s stabilising effect, offering them some much-needed peace of mind.