The Crossrail effect on property prices is by now a well-documented phenomenon, with many areas along the route having seen property prices skyrocketing in the last 10 years, from Reading in the west to Essex in the east.
By some estimates, house prices in the areas set to benefit from having a Crossrail station have increased by as much as 95 per cent; in cash terms, that's a increase from an average house price of around £305,000 to a whopping £595,000.
This trend began reversing, however, when in September 2018 it was announced that Crossrail would not be ready in time for the original date of December 2018. Property prices along the Crossrail route then began decreasing at the same month-on-month rate of 0.8 per cent as they had been growing before the delay announcement.
With the latest announcement of yet another delay to the completion of the new line, potentially pushing back the opening to as late as 2021, and with the project running over budget by some £600 million, the Crossrail property market is continuing to cool. The average house price surrounding Crossrail stations has fallen by 3.1 per cent since September, with a significantly more dramatic drop of 28 per cent in areas around the London stations of Bond Street, Tottenham Court Road, and Woolwich. The estate agent comparison website GetAgent.co.uk are estimating a total loss of £101,050 in property values if the downward trend continues until 2021.
This is not to say that if you have bought property along the Crossrail route, you should now be regretting your decision. Any losses seen now should be recouped when the line finally does open, and the transport link benefits it provides become apparent. Also, if you'd been considering a purchase, now could be a good time to take the plunge, while prices are lower.
Founder and CEO of GetAgent.co.uk, Colby Short, comments, 'The turbulent ride for those living around stations due to benefit from Crossrail continues, as yet more delays are likely to see prices fall further.
'The Crossrail project is set to be a game changer when it comes to traversing the London landscape and the initial scramble to buy along the line brought some pretty meteoric house price increases. But as a consistent string of delays has set in, this urgency has seeped away and as a result, the high levels of house price growth have followed suit.
'Should this persist over the next two years, there could be a serious re-levelling of the Crossrail market. However, even if this were to ring true, the average Crossrail house price would still be some £170,00 more than when construction first started. Those living along the line should rest assured that the long-term benefits of doing so will far outweigh the current inconvenience of yet another London transport link failing to run on time.
'When it does open, the Crossrail influence is certain to bring high-speed house price growth with it and some areas, such as Liverpool Street, Gidea Park, Twyford and more, are already bucking the wider trends of political uncertainty to register strong price growth at present.'