A recent study by London lettings and estate agent, Benham and Reeves, suggests that the allure of Crossrail among homebuyers may be waning. The research showed that property prices around 20 Crossrail stations are rising at a slower pace than those in the wider local authorities they belong to.
The study evaluated the current market values and the annual rate of growth in each postcode area housing a Crossrail station, comparing these to the respective broader local authority area.
While Crossrail house prices have seen a modest increase of +2.4% over the past year, this figure barely outperforms the +1.9% rise witnessed across wider local authorities home to a Crossrail station.
Romford was the standout performer, with a +14% annual increase in house prices within its RM1 postcode. This figure comfortably outperformed the wider borough of Havering by +9.6%. Other notable performers include Liverpool Street station and Forest Gate, both of which outstripped their respective broader boroughs.
In contrast, the E14 postcode, home to the Canary Wharf Crossrail station, saw a sharp -17% drop in house prices in the past year. Whitechapel’s E1 postcode witnessed a -1% decrease. Consequently, both these Crossrail stations underperformed compared to the broader borough of Tower Hamlets, which saw an average house price increase of +10% annually.
Furthermore, property prices around 18 other Crossrail stations have underperformed relative to their broader local authorities. These include Gidea Park, Acton Main Line, Southall, Woolwich, Custom House, Twyford, Reading, Tottenham Court Road, Stratford, Maryland, Langley, Abbey Wood, Slough, Burnham, Goodmayes, Seven Kings, Manor Park and Harold Wood.
Marc von Grundherr, director of Benham and Reeves, said: “Crossrail property values as a whole are still standing fairly strong, there are as many as 20 stations where property values have trailed the wider area over the last year.” He pointed to Canary Wharf as an example, which he expects to see less demand from working professionals due to HSBC’s decision to relocate to the city.
However, von Grundherr also noted that this dip in property values offers buyers and investors an excellent opportunity to purchase. He highlighted the strong rental demand in areas like Whitechapel, which could lead to favourable rental yields despite its underperformance in property prices.
