top of page

Crossrail: How It Will Impact London Property Market - Compare Conveyancing

Crossrail, Europe's largest infrastructure project, is almost completed. This £15.4bn railway line has been under construction for over a decade, and it is set to revolutionise London's transportation network. The new rail system promises to cut the travel time significantly, enhance connectivity across the city's east and west, reduce road congestion, and offer a quick, convenient, and affordable way for Londoners to travel around the city. Yet, what exactly does this mean for London's property market? In this blog post, we explore how Crossrail is expected to impact the London property market and what homebuyers should know.

Compare Conveyancing
Compare Conveyancing

Increased Property Value

Firstly, Crossrail is expected to boost property prices around stations, providing a new lifestyle and commute options for those seeking accessibility. The new line will bring certain areas closer to London's city centre, giving residents an opportunity to access better employment opportunities. According to the London School of Economics (LSE), the average increase in property prices in a one-kilometre radius around Crossrail stations is 20%. Moreover, properties around western Crossrail stations are predicted to appreciate more rapidly than those located in its east. The new stations like Paddington, Bond Street, and Farringdon are expected to benefit the most from the increased demand, making these areas highly attractive to homebuyers.

New Property Developments

Secondly, there will be a surge of new property developments arising from Crossrail. The new train line will make it possible to explore and develop sites previously regarded as inaccessible. The construction of Crossrail has led to an increase in the number of new flats, houses and shops being built close to the new route. The creation of the new routes will bring new opportunities for developers, and we can expect to see an increase in the number of properties completed in time for the launch of the new service, according to experts.

Greater investment opportunities

Thirdly, the Crossrail project is expected to attract significant investment into the areas that are served by the new line. With improved transport links and shorter travel times, this is expected to bolster the appeal of existing developments and spark a wave of new investment activity.

Improved rental yields and rental income

Fourthly, at least a quarter of new homes being developed around eight of the stations are likely to go to the rental market, resulting in a significant growth of rental homes. The stations set to attract high demand, such as Canary Wharf and Farringdon, can expect to see a considerable amount of rental yield due to the high demand. With Crossrail opening up the entire London area to renters, this could result in a more competitive market, leading to an increase in rental prices.

A Shift in London’s Centre of Activity

Fifthly, Crossrail’s arrival has the potential to displace the centre of London and new commuter hubs to emerge. The opening of Crossrail will mark the first time commuters can travel across London without managed termini points slowing them down, meaning that two central business districts – The City and Canary Wharf – will be connected. As a result, the line can drive a new shift of economic activity south of the river, with many different neighbourhoods likely to benefit from this. There could be pressure on property prices around traditionally popular inner-city areas to begin to reflect the same as certain other thriving suburban areas.

Crossrail is set to bring fundamental changes to the London property market and have a significant impact on London's economy, transportation system, and the attractiveness of the city. The expectation of increased connectivity and prices around stations, the surge of property development, greater investment opportunities, improved rental yields, and a shift in London’s centre of activity could bring new opportunities for savvy buyers and developers. However, homebuyers are expected to pay a premium to live near the new stations a factor that could put some people off, but ultimately, Crossrail offers a host of opportunities for those with the vision to act early and capitalise on its potential.

Compare Conveyancing


bottom of page