Crossrail 2 Property Hot Spots
In this, our third article, we look at further Crossrail 2 Property Hot Spots (our previous two articles can be found at https://sourceinvestments.com/insights/)
The first Crossrail route (now known as the Elizabeth Line) which is due for completion in just a couple of years, has had a profound impact on property prices having already added £5.5 billion to property values along the route.
Given how house prices have increased throughout the development of the Elizabeth line, it’s little wonder that people are now looking at how Crossrail 2 may also impact the areas surrounding the line, and whether it might be worth considering investing.
Even though the exact route hasn’t yet been finalised, early investment is likely to secure the best bargains. Also, it is worth bearing in mind that the new line will indirectly benefit towns beyond the stations in Surrey, Hertfordshire, and London which will receive direct Crossrail services; for example, towns and cities such as Cambridge, Woking, Basingstoke, Southampton and Portsmouth will see the mainline routes into Liverpool Street and Waterloo free up after Crossrail 2 begins operating.
Homes surrounding the Crossrail 2 route can expect a significant price jump and potentially a huge impact. In Zone 3, particularly, established but hard-to-get-to places like Tooting Broadway and Wimbledon will see a good jump in house prices. But the reality is that all the areas with Crossrail 2 stations will benefit.
However, those parts of the line which are already classed as “unaffordable” based on the average salary of London residents, may see smaller percentage increases than the average overall increase for the route.
Lessons from Crossrail 1
One of the good things about Crossrail 2 is that investors have the Elizabeth line as a guide as to how house and land prices may change as the project develops.
Many experts argue that one of the mistakes made in the planning for Crossrail 1 was that housing wasn’t given enough attention early enough. Crossrail 2 has learned from this and there is immense potential with predictions that around 200,000 new homes will be built. Such a figure can only realistically be achieved by building high-density housing [typically blocks of flats and tower blocks] which will be welcomed in many areas but is likely to meet resistance in out of town areas and will possibly be thwarted by green belt restrictions.
A three stage project
Stage 1 is the planning and it is at this stage that the bravest investors get involved with relevant areas getting an early uplift from speculators well before the decision to proceed receives a 100 per cent guarantee. Indeed, there is evidence that activity is already happening. Developers have been purchasing land along the route, much of which they will sit on until the time is right to offer it to house builders and developers at a profit.
Such deals are being done off the back of notional investment in the hope that even if Crossrail 2 doesn’t come off, there is value in the land anyway.
Stage 2 starts when physical construction begins and will inevitably trigger another wave of buyer activity of both land and existing property.
Stage 3 is when the more conservative investors and home buyers get involved, those who will wait until the project nears completion (2033 in this case) before moving in to take advantage of the final upsurge in land values and house prices.
Crossrail 2 Property Hot Spots
Any area through which Crossrail 2 will run, and in which the average price of a home is still below the £300,000 mark, is likely to see big increases. Those stations clustered together at the north of the route such as Cheshunt, Waltham Cross, Enfield Lock, Brimsdown, Ponders Edge and Angel Row are all examples of where this might happen.
In the southern end of the line local agents are expecting significant increase if Crossrail 2 goes ahead.
Shepperton for example where the average sale price has climbed from £300,000 in November 2012 to £347,000 in November 2015 still has some way to go and almost certainly some bargains to be had.
In Twickenham where the average house price is £506,930, (an 87 per cent increase in the past 10 years) predictions are that prices could rise by more than £200,000.
In nearby Hampton Court, the average house price could rise by £150,000, having already risen by 45 per cent since 2004.
In Kingston, the potential increase could average 30 per cent to £460,000.
Whilst in Surbiton there could be a rise of £130,000 and in Chessington a rise of around £100,000 by 2020.
House prices in Wimbledon, Epsom and Motspur Park could all increase by more than £100,000 if included in the final plans.
Should I Invest Now?
Whilst Investing blindly in any area on the Crossrail 2 route is probably not a good idea, there are currently many good investment opportunities that are likely to remain available only for a finite period. To get the best of the bargains early investment is likely to pay off.
Get in touch with our expert team for more information at https://sourceinvestments.com/contact/