Elizabeth Line Doubles House Prices Near Stations

Man on the London Underground Tube

Some London postcodes near Crossrail stations have doubled in value since the government first announced the project.

Prices have increased the most for homes in London’s prestigious W1 postcode around rebuilt stations at Tottenham Court Road and Bond Street.

In 2008, the cost of homes in London W1 averaged £725,603. Now the line has opened, the price of a home has shot up to £2.3 million – a 215 per cent increase.

And while house prices have generally risen in the capital, research by estate agents Benham & Reeves found homes near Crossrail stations come with a premium of 14 per cent more than those in the same neighbourhoods but farther from stations.

Homes in six other postcodes, mainly in London’s East End, have had more than 100 per cent price increases. They are:

  • Woolwich (SE18 – 128 per cent)
  • Goodmayes and Seven Kings (IG3 – 116 per cent)
  • Romford (RM1 – 112 per cent)
  • Twyford (RG10 – 110 per cent)
  • Manor Park (E12 – 103 per cent)
  • Forest Gate (E7 – 102 per cent)

The Crossrail Property Bubble

On average, homes near Crossrail stations have seen a 79 per cent rise in values.

Crossrail – dubbed the Elizabeth Line to celebrate the Queen’s platinum jubilee – has not boosted house prices in every neighbourhood along the line.

Landlords can still pick up homes to rent near 13 stations where house prices are cheaper than those in the wider area.

Buyers can find homes in Southall, West London, which are 27 per cent cheaper than in neighbouring Ealing. Other areas where homes near Crossrail stations are more affordable than the local average are:

  • West Drayton (-17 per cent)
  • Hayes and Harlington (-15 per cent)
  • Brentwood (-13 per cent)
  • Ilford (-13 per cent)

Gift That Keeps Giving For Homeowners

Benham and Reeves director Marc von Grundherr said: “Despite the extensive delays to its actual delivery, Crossrail has been the gift that keeps on giving for homeowners living within arm’s reach of a Crossrail station, with property values climbing considerably since it was first announced back in 2008.

“We don’t expect this influence to subside anytime soon and house price growth surrounding these stations is likely to climb further still until the project itself has come to full fruition.

“Once it has and homebuyers know completely where they stand with the service available to them, this upward growth may well subside, however, these stations are likely to continue commanding a healthy premium in the same way a good tube link does in today’s market.

“The good news is there are still a number of stations where house prices surrounding a Crossrail station remain below that of the wider area and these make an ideal area of investment for savvy buyers with an eye on future house price appreciation.”

LInking East And West – The Elizabeth Line

The Elizabeth LIne links major commuter zones to the east and west of the capital for the first time with faster journey times and fewer changes with trains running every five minutes.

The route runs from Reading, Berkshire in the west, to Shenfield, Essex, in the east with forks to Heathrow Airport and Abbey Wood, Kent. The £18.5 billion project was opened by the Queen in Spring 2022.

Source: Transport for London

Another major infrastructure project is also impacting house prices across the country.

HS2, the high-speed rail link from London to Birmingham and beyond is sending house prices lower as worried buyers are concerned about noise and pollution levels from the new route.

Planners say HS2 will bring tens of thousands of homes within minutes commuting distance of London and that house prices will rebound as they did after HS1 from London to the Channel Tunnel was completed in Kent.

Park Life

Separate research by the firm revealed buyers were prepared to pay more to live near one of London’s famous green spaces.

Property values around four of Central London’s Royal Parks are up to 144 per cent more expensive than the London house price average, while property around Crystal Palace lags by 9.6 per cent.

House prices near London’s parks

ParkCategoryAverage price (sold price £/sq ft)Difference v London averageDifference vs London ave (%)
Kensington GardensRoyal park£1,474£870144.20%
Green ParkRoyal park£1,408£804133.20%
Hyde ParkRoyal park£1,404£801132.60%
St. James’s ParkRoyal park£1,238£635105.10%
Battersea ParkCouncil park£1,132£52987.60%
Regent’s ParkRoyal park£1,032£42870.90%
Richmond ParkRoyal park£757£15325.40%
Brockwell ParkCouncil park£719£11619.10%
Victoria ParkCouncil park£709£10517.40%
Alexandra ParkCouncil park£684£8113.40%
Greenwich ParkRoyal park£641£386.20%
Bushy ParkRoyal park£617£132.20%
Crystal Palace ParkCouncil park£546-£58-9.60%
Source: Benham & Reeve

Cost of Living Near London’s ‘Brandmarks’

Besides transport links and green spaces, another house price driver in the capital is how close a home is to a famous ‘brandmark’ – like Harrods, where homes in the neighbourhood cost 59 per cent more than the average for the SW1X postcode.

Salt Bae’s Westminster steak house Nusr-Et was voted one of London’s worst and most expensive restaurants by customers paying up to £10,000 for a sparkly gold-wrapped steak.

But neighbours must pay 76 per cent more for a property near the eatery compared to the average home price in Westminster.

Also in Westminster are three of London’s plushest landmark hotels – Claridge’s, The Dorchester and The Connaught. All are in the capitals W!K postcode where homes cost double the Westminster average of £2,413 a square foot.

Von Grundherr said: “London is jam-packed with globally renowned brandmarks. Many of them within a couple of square miles of each other in Central London, occupying some of the most expensive real estate on the planet. That’s why, if you want to live nearby, you’re going to need deep pockets.”

London Property Prices FAQ

Which cities are linked by HS2?

The first leg of HS2 runs from London to Birmingham, where the route forks. The left Y fork continues through Crewe to Manchester, while the right fork ends at Nottingham. The right fork was planned to terminate in Leeds, but the Nottingham – Leeds extension was scrapped.

How much will HS2 cost?

The final bill is expected to top £100 billion, but as construction is still underway, the figure could rise.

How fast is HS2?

The trains will run at an average of 186 mph, cutting journey times between Birmingham and London by 35 minutes. A trip from Manchester to London will take just over an hour.

How much are average house prices?

According to the Office for National Statistics, an average UK home cost £281,000 in April 2022. House prices in London are the most expensive in the country, averaging £530,000. The lowest average house price is £155,000 in the North East.

Should landlords buy in prime areas?

The answer depends on affordability. Decent property in a prime area is always a better investment than a fantastic home in a rundown neighbourhood.

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