Crossrail to boost London property market by £5.5bn

Lettings in London could receive a major boost from the Crossrail project over the next nine years as significant investment takes place along the public transport route.

Property consultancy GVA has published a new report looking at the potential impact of Crossrail on the capital's residential and commercial real estate market.

The project is expected to create £5.5 billion in added value between now and 2021, supporting the delivery of more than 57,000 new homes and 3.25 million square metres of commercial space.

GVA said Crossrail is already having a huge impact on people's property investment decisions, especially in parts of Central London.

And it will continue to do so, with a number of areas set to benefit. These include Ealing Broadway, Southall, Woolwich, Abbey Wood, Custom House, Whitechapel, Farringdon and Canary Wharf.

The report predicts that the value of homes close to Crossrail stations in the centre of the capital will rise by around 25 per cent, while those in the suburbs will enjoy a 20 per cent increase in price.

And it's not just property values that will be affected. GVA reckons that in many locations the arrival of Crossrail stations will have a "transformative effect" on the local property market.

This means that areas currently not on the radar for buyers, renters and businesses may become a lot more attractive thanks to the new transport link.

Crossrail will serve 37 stations in total, from Maidenhead and Heathrow in the west to Shenfield and Abbey Wood in the east, passing right through Central London.

Each year around 200 million people are expected to use the new train route, which will bring an extra 1.5 million people within a 45-minute commute of the capital's major business districts.

It is also expected to boost London's rail capacity by ten per cent and ease congestion around the existing transport network.

Mike Taylor, director of GVA, said: "One of the biggest impacts of Crossrail will be on the commercial and residential property market with additional value of as much as £5.5bn generated along the route.

"Crossrail will have a distinct impact on the residential property market not just in London but also several areas in Essex and Berkshire. As a result of significantly improved transport connections, areas such as Abbey Wood, Woolwich, Ealing Broadway and Southall are highlighted as future places to watch."

Posted by Ben Carter

Published 25th October, 2012

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