Crossrail has boosted average house prices by up to 60% for homes in towns near to stations ahead of the 2019 launch date.
Research from the Nationwide shows the impact of Crossrail and how house prices have increased by up to 60% for homes near stations soon to have a fast commuter route to central London.
The Crossrail project gained Royal Assent in July 2008 with 40 stations from Maidenhead to Reading linking Heathrow in the west to Shenfield and Abbey Wood in the east.
The new Elizabeth Line connects towns outside the Greater London region to central London, the City and Canary Wharf improving connections, reducing commuting time and reducing congestion.
Nationwide has compared house prices for the outer towns as central London is already well connected and property would only marginally benefit from the Elizabeth Line.
Outer towns benefit the most
There have been two stand out performers in the last two years since April 2014 with Slough property prices rising 39% and Reading with prices higher by 33% compared to the UK average of 22%.
The stronger rise in house prices in Reading means first time buyers would require a larger deposit or higher earnings to purchase their first home.
The table shows house price growth for 6 years between May 2010 to April 2016 of outer regions west of London.
| Location | House price growth |
|---|---|
| Slough | 60% |
| Windsor & Maidenhead | 51% |
| South Bucks | 46% |
| South East Region | 36% |
| UK average | 22% |
Slough house prices are up 60% with average house prices of £283,891, Windsor & Maidenhead prices are higher by 51% with £479,058 average and South Bucks up 46% with average prices now £569,488.
For home movers planning to buy in Slough or Windsor & Maidenhead the gap between their current home and the next is likely to be greater which means they need a larger mortgage.
For buy-to-let landlords with existing properties the rise in house prices creates more equity which they can benefit from if they sell in the future.
Since March 2014 the government agreed the extension of the Crossrail project from Maidenhead to Reading. The table shows house price growth for 2 years between April 2014 to April 2016 of the new western extension.
| Location | House price growth |
|---|---|
| Reading | 33% |
| Wokingham | 28% |
| South East Region | 22% |
| UK average | 14% |
This strong rate of house price growth has been driven by demand for properties and a rise in transactions.
Rising house prices allows the older equity release mortgage buyer to access wealth in their property for home improvements, holidays or giving to a family member.
Reading house prices are up 33% with average house prices of £296,947 and Wokingham prices are higher by 28% and £406,765 average.
Faster access to City and Docklands
The Elizabeth Line is likely to make Slough an attractive proposition for London workers that would prefer to live outside of the capital.
Andrew Harvey, Senior Economic Analyst at Nationwide said commuting journey times to Central London will be around 15 minutes faster and 20 minutes faster to Docklands.
The Crossrail project has provided a significant uplift to prices in the west section of the line to Berkshire with prices in Slough up 39% since April 2014, more than twice the average rate of growth seen across the South East.
For remortgage buyers the higher prices due to Crossrail give them an opportunity to release capital which they can use to improve their home.
At the eastern section of the line house price growth have not been as strong possibly because it only reaches to Brentwood and Shenfield.
Prices have increased by 43% in Brentwood since May 2010 only slightly higher than the regional average of 36% as there are already good transport links to both the City and Canary Wharf by Stratford, says Mr Harvey.
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