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Billion-pound infrastructure schemes like Crossrail and HS2 are pushing house prices as they reach across the country.
Homes in postcodes close to Crossrail stations have seen values soar by 79 per cent since the project was launched - a premium of 14 per cent over house prices in the same area, which are farther away from stations.
London estate and letting agent Benham & Reeves has monitored Crossrail house prices since the project was announced in July 2008.
The most significant increases were in the plush Central London W1 postcode, which includes Tottenham Court Road and Bond Street Crossrail stations. In 2008, the average property price in W1 was £725,603. Today, the same property is worth £2.3 million - a 215 per cent improvement.
Many other Crossrail postcodes have seen homes more than double in price:
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.”
The Crossrail project was named the Elizabeth Line to celebrate the Queen’s platinum jubilee earlier this year.
The route links Reading, Berkshire, to the west with Shenfield, Essex, and Abbey Wood, Kent, in the east. Passengers can travel from Essex and Berkshire to Heathrow without changing trains for the first time.
The £18.5 billion project is the first east-west rail link serving London.
Crossrail trains run every five minutes.
Source: Transport for London
HS1 is the high-speed rail link between London and the Channel Tunnel, while HS2 is the link from London to Birmingham and onwards. At Birmingham, the line forks into a Y, the left fork carries on to Manchester, and the right split ends at the East Midlands Hub in Nottingham.
A planned HS2 extension from Nottingham to Leeds is on the back-burner.
HS1 costs £5.8 billion, while the accountants estimate the final cost of HS2 could reach as high as £100 billion. HS1 opened in November 2007.
High-speed trains on HS1 can travel at up to 186 mph.
Research showed that HS1 brought 164,000 more homes in Kent within an hour’s commute of the capital. However, house prices along the route dropped compared to those in commuter areas north of the River Thames during construction.
But prices bounced back, and an average terraced home in the county currently sells for £430,000.
HS2 is expected to have a similar negative impact on house prices during construction and will then boost them on completion as commuters move closer to stations.
Homeowners have given the scheme a mixed reception. Although thousands more homes and businesses are brought into the 60-minute commute from London, people living close to the route fear noise and pollution may increase and devalue their properties.
Construction has already started on the HS2 London to Birmingham and Manchester fork.
Source: Department of Transport