Top 5 Crossrail property hotspots: How will Crossrail affect house prices?

After many years of delays, Crossrail, or the Elizabeth line if you’d prefer, is finally here. New and improved travel routes have emerged across the capital, along with potential opportunities for investors. But how will Crossrail affect property prices? Whilst many locations have witnessed exponential growth, here are our top 5 up-and-coming Crossrail property hotspots along the Elizabeth line that seem to show plenty of room to develop:

1. Custom House

Property values close to the Royal Docks have risen by just 2.2% annually since the announcement of Crossrail. This is despite the economic potential of the area. On top of quick access to central London, Custom House has Canary Wharf on its doorstep. The ExCel centre, a major exhibition and convention hub, is also based near the station. This could create demand for workers in the event world who are desperate to avoid a long commute.

Average property price:

£396,208 in 2021

Average property price by property type:

• Flats sold for an average price of £395,409 over 2021
• Terraced properties sold for an average of £405,000

Source: Rightmove

2. Acton Main Line

Property prices in the vicinity of the station rose by only 3.8% annually since the start of the Crossrail project. Despite its ability to get residents into Bond Street in a mere 9 minutes and having plenty of potential to grow, being home to plenty of period houses along with new developments.

Average property price:

£645,306 over 2021

Average price by property type:

• Flats sold for an average price of £373,692 over 2021
• Terraced properties sold for an average of £955,558
• Semi-detached properties sold for an average of £979,200

Source: Rightmove

3. Romford

Romford prices have been continuously rising for years now, with plenty of development plans in the works. But, even with the announcement of Crossrail, house prices near the station have only increase by 2.8% year-on-year since 2008. While plans to revamp the town centre have stalled for now, this could actually provide an opportunity to sneak in under the radar; while the details are hashed out.

Average property price:

£270,750 over 2021

Average price by property type:

• Flats sold for an average price of £231,737 over 2021
• Terraced properties sold for an average of £405,000
• Semi-detached properties sold for an average of £475,000

Source: Rightmove

4. Woolwich

Woolwich has had billions invested into it over the years, with more yet to come. However, properties within 500 metres of the station have only risen by 2.3% annually. Those a bit further out, on the other hand, jumped by 5.2%, that’s almost a 3% difference every year. Woolwich may be a promising option for travellers, with the Elizabeth Line halving the journey to London and making it a Crossrail property hotspot.

Average property price:

£367,659 over 2021

Average price by property type:

• Flats sold for an average price of £364,070 over 2021
• Terraced properties sold for an average of £482,500

Source: Rightmove

5. Ealing Broadway

Compared to the previous entries in this list, prices near Ealing Broadway station are relatively expensive. Here, they have risen by 4.3% annually since Crossrail began. However, there’s still arguably plenty of room left to grow. It’s expected to be amongst London’s best-connected boroughs and one of Crossrail’s top property hotspots.

Average property price:

£722,534 over 2021

Average price by property type:

• Flats sold for an average price of £501,384 over 2021
• Terraced properties sold for an average of £887,500
• Detached properties sold for an average of £3,025,500

Source: Rightmove

How will Crossrail affect property prices?

Property prices near new rail projects tend to spike and Crossrail has proven a typical example of this. The prices in Crossrail property hotspots along the Elizabeth line stations have skyrocketed in certain prime locations, according to Rightmove.

Asking prices near Maryland station saw the biggest jump. Many properties more than doubled from £233,480 a decade ago, to £486,235 in 2022.

Can you take advantage when Crossrail property hotspots?

Some property investors and borrowers may fear they’ve already missed the boat on Crossrail property hotspots. Indeed, those trying to join the party now will feel as though they’re standing at the back of a long queue.

Competition is rife across the line, with the numbers of buyers contacting estate agent’s about Twyford for example, having tripled over the last 10 years. The number of people enquiring about available property near Abbey Wood station has in fact risen by a staggering 869%.

However, the Crossrail impact on house prices may yet have a second wind. Analysis of data from Savills highlighted the above 5 stations have yet to see dramatic price hikes. These Crossrail property hotpots may provide investors with a golden opportunity over the coming months and years. Especially as shifting sentiment, priorities, and economic realities push people back towards London.

Source: The Telegraph,  Property Investor Today

Are we about to see a reverse of the lockdown city exodus?

Being located within London’s borders, at first glance these locations seem to go against the property trends seen over the last couple of years. Throughout the pandemic, there was a mass exodus from London and other cities. People suddenly found themselves able to work from anywhere. As many as 700,000 Londoners moved out during the pandemic, likely in search of more space in leafier areas. Chances are though, a lot of these city slickers may have been a bit hasty. For some, the rolling hills they moved to couldn’t replace their local coffee shops. Some 72% of people who moved to the countryside during the lockdowns are planning to move back, with 85% saying they already regret moving. London itself is also witnessing tenants flood back to the Capital. Nearly a third of homes let this year were taken by someone previously living outside the city, up from 12% in 2020.

Source: The Economic Statistics Centre of Excellence, Wales Online, Mortgage Solutions

As we (hopefully) continue to move away from Covid and its impact on the economy, a return to pre-2020 working practices may be more likely than expected. While it’s true that many employers have embraced flexible working, others appear keen to get workers back into offices asap. In the public sector, both Boris Johnson and Jacob Rees Mogg are on a war path to get civil servants back to their desks. Private companies may also want to reverse the work from home trend.

The latest data from the Office for National Statistics (ONS) showed only 24% of businesses said they intended to use increased homeworking going forward. Additionally, while 85% of working adults said they wanted to use a hybrid approach in the future, 32% of employers said they were unsure of how many of their workforce will be in the office or not. Workers may find themselves needing to be nearer to their offices sooner rather than later.

Source: ONS, BBC

How can specialist finance help you with these Crossrail property hotspots?

As demand ramps up in these new – yet underappreciated – commuter hotspots and other expensive places, there are a range of options available to investors. To ensure they get in ahead of their competition, investors can utilise the speed of bridging loans to get the ball rolling on a purchase.

Bridging finance can be issued in as little as 3 days, allowing investors to take advantage of an opportunity before prices jump, or the limited supply dries up. We provide a range of bridging products to clients with varying plans in place. Be it a straightforward residential loan for a buy-to-let or permitted and light development for those planning to refurbish an asset to add value, increase EPC ratings, or convert a buy-to-let into an HMO.

If you’re wanting more information on increasing your buy-to-let’s energy efficiency, to meet upcoming EPC regulation changes, read our blog here.

To find out more about our specialist finance products and how they could help purchase a commuter property, please click the following links:

• Fast bridging loan products
• Buy-to-let mortgages

The answer to how will Crossrail affect property prices has largely already been answered. Prices have already risen across the new line and are predicted to rise further over the coming years. The real question is if it’s still possible to take advantage of the Crossrail impact on house prices. Commuters may hold the key here as working dynamics continue to evolve. Should they come back from the suburbs to the city – by necessity or choice – a few underappreciated areas could help investors take advantage.