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Crossrail Delays Impacting on London Property Market

Crossrail Delays Impacting on London Property Market

There are a number of factors that impact on property prices with aspects like school catchment areas and transport availability affecting prices. In London, the importance of transport on property prices has been seen alongside the Crossrail project.

In statistics provided by Property Planner, house prices around all of the 40 stations that lie on the Elizabeth Line, due to open in December of 2019, have increased by at least 41% in the past decade. There is a level of convenience in being located to a well-connected train station and there has been a lot of hype and excitement around the initial Crossrail project. Savvy buyers managed to obtain a great return on their investment and of course, many people were able to snap up a home that allows them to make the most of their life.

Crossrail 2 may be delayed for up to ten years

While Crossrail is still very much on track, there are concerns about the arrival of the Crossrail 2 route. This was announced back in 2013, leading to great excitement amongst residents and commuters who would benefit from improved rail services and for investors looking to capitalise on increased property prices. However, it has been suggested that a shortfall in funding could see Crossrail 2 being delayed by up to 10 years and this has caused many people to question their next move in the London property market.

When the Crossrail 2 announcement was made, there was an increased level of demand for property in the areas that would be located on the proposed line. This led to notable rent increases in 13 of the 15 local authorities. The most striking example can be seen in the most northern terminus point Broxbourne, which experienced an increase in rental fees of 21.5%.

Of course, it is not just the addition or improvement of a rail service that creates demand for property or leads to prices increasing. When a new station is developed or more people will use their nearby station, the local economy is positively impacted on too. You will usually find the emergence of coffee shops and newspaper outlets around stations and if there is sufficient demand, cafes, restaurants and bars can also be accommodated with success.

A new rail line is often the catalyst for genuine growth

Before you know it, there is a community being developed in an area and with more people happy to live in the area, there is a “pull-effect” on the local economy. The new rail-line is the catalyst for the growth but it is the many additional features that come after rail improvements that often cause the real rise in property prices or demand.

However, a delay of up to ten years is likely to be off-putting to developers and buyers. People who bought early, in an attempt to beat the rush and get a great deal, may feel as though they have no option to stick it out, but many will hold off. This could divert attention and interest to other parts of the capital or it could see potential buyers delay in making a purchase until concrete news is provided about the Crossrail 2 situation.



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