"The Crossrail effect" is already boosting house prices
- 8th September 2015
- Buying Property News
Investors would be wise to target areas on the Crossrail line sooner rather than later in order to maximize returns
With the launch of the first phase of Crossrail services now less than three years away in May 2018, is it too late for investors to take advantage of the boost to property prices that such a huge infrastructure project can bring?
Looking back, it is estimated that since the project was given full approval in 2008, the value of homes near stations along the route has grown by 20% more than the average capital appreciation of residential properties in London. Crossrail themselves reckon that their project is set to add £5.5 billion to property values.
Stephen Ludlow, Chairman of ludlowthompson, comments: “We have regularly advised investors to explore the Crossrail route but there is still scope to take advantage of the expected Crossrail premium. Some of the ‘low hanging fruit’ may have gone so investors will need to do careful research and get good advice to spot the remaining opportunities and be aware that sellers are bound to make the most of all the publicity attached to Crossrail.
“Just as important is the general lesson that transport projects, both major and minor, can generate excellent buy-to-let investment opportunities in a world class city like London, where commuter links are so important. Look for Crossrail related opportunities, certainly, but also keep an eye open for others which might not be so high profile or obvious.”
Examples that ludlowthompson have suggested exploring include extensions to the London Overground network, improvements to Thameslink, the new cycle superhighways and even Boris bike docking stations.
Looking further ahead still, there is the proposed Crossrail 2, which will link Wimbledon in the South West to Tottenham Hale in the North East.
We have regularly advised investors to explore the Crossrail route but there is still scope to take advantage of the expected Crossrail premium.
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