Forget Crossrail – invest in these hotspots

The train has left the station for banking on the Elizabeth line bounce, writes Liz Rowlinson. Here are the best-value places to buy near other major projects

The name “Crossrail” was coined in 1974, but the idea of an eastwest train across London has been around since the Second World War. Next year, the Elizabeth line will finally open – unless it is delayed once again.

Since the project got the green light in 2008, property investors and developers have ploughed money into the route, hoping to extract as much value as possible along its 73 miles.

But there are signs that it is now too late to really benefit from huge price growth prompted by the new line.

Property prices in postcodes with a Crossrail station are on average 17pc higher than in their wider districts, according to research by the estate agency Benham and Reeves.

Analysis by the agency Savills found that the average price for homes within 1km of Southall’s Crossrail station in west London has gained 62pc over the past five years. Farther east in West Ealing, prices are up 25pc, while in Shenfield at the far east of the line prices are up 24pc.

After such price growth in many of these areas, much of the impact of the new infrastructure is already baked into values.

But look beyond Crossrail, and you can find so- called Cinderella locations where prices are forecast to rise sharply because of their proximity to new regeneration plans and potential new infrastructure projects.

The Bakerloo line extension, which has not yet been confirmed, could open up swathes of south- east London, from Burgess Park to Lewisham and beyond. Getting in before the decision is officially made will allow for maximum profit – but it’s a risk, as it may never be built, or an alternative route may be chosen.

Other projects that will boost values include the regeneration of Harrow’s town centre and the masterplan for Wembley, where 14,000 homes are being built. There will also be price rises in locations that are opened up by the new Crossrail stations, but which still require onward travel, such as Acton, south of its main line station.

The developer Barratt London and the property website Rightmove have identified other areas of value in London that are ripe for investment and where house prices are tipped to soar.

CATFORD A potential stop on the proposed Bakerloo line extension, Catford in southeast London is considerably more affordable than its neighbours, with an average asking price of £460,346. The town centre – with its famed fibreglass black cat – is being smartened between Catford and Catford Bridge stations, and highlights include Catford Food Market and the Broadway Cinema.

Prices in the area have increased 9pc over five years, in part due to its affordability, and are predicted to keep rising if plans for the Tube line get the go-ahead. But there could be a snag: Andy Byford, Transport for London’s commissioner, has said the project is “on hold” until they find more funding.

Even if that is the case, the more affordable prices make it a solid investment prospect. Becky Munday, of Munday’s Estate Agents, said: “Catford draws upsizers and second-steppers seeking value. Think of it as one postcode farther than Forest Hill, and it becomes very accessible. Schools are good, especially the primaries, and Catford has a leafy feel off the main roads.”

Prices towards Forest Hill are higher, with sought- after pockets such as the Culverley Green Conservation area, where three-bedroom Edwardian houses can reach £1.3m and twobedroom garden flats £450,000. Look south for value, advised Ronke Maye, of the agency KFH. “Ex-local authority houses cost £375,000 to £450,000 around Bellingham Road. This area offers potential.”

HAYES In the past 10 years, property prices in Hayes have soared by 73pc due to its position on Crossrail, as speculators and developers muscled into the area. It has spurred a number of regeneration projects, including improvements to the town centre, the redevelopment of the former Nestlé building into Barratt’s Hayes Village, and the Old Vinyl Factory, a new neighbourhood on the site of the 18-acre EMI record plant.

Already only 15 minutes from Paddington, from next year Hayes & Harlington will enjoy faster links into the West End and the City on the Elizabeth line. Proximity to the M4, Heathrow and M25 also make it hard to beat for transport links.

This is the only location on Crossrail that has made the list of areas with “hidden value” because prices are still relatively low. The average property price is still only £397,898, which can nearly buy you a three-bedroom semidetached home. Rental values are forecast to grow by 18pc over the next five years, according to the agency Strutt & Parker, boosted by big local businesses including GSK, Sky and Apple.

HOUNSLOW Just 10 minutes from Crossrail’s Heathrow Airport stop, Hounslow is not on the new line but the benefits, and price rises, are echoed in the area. With an average asking price of £428,809, prices in Hounslow are less than half the price of other similarly connected west London neighbourhoods. Prices are up 8pc in five years and the improvement of the high street, with a new 10-screen Cineworld, will help attract new buyers. Kam Waghela, an IT worker, bought a one-bedroom flat offplan in central Hounslow, drawn by the high yields. “This area is great for rentals. I have a couple who moved in this year, and I am expecting yields of 7-8pc.”

WEST HENDON Well-connected by Tube and road networks, Hendon is an affordable neighbour to well- heeled Highgate and Finchley in north- west London. An average property price of £ 635,541 includes an increase of 4pc in the past year, and it takes in its most expensive pockets around Hendon Central station and the Shirehall Estate.

The best value is found in West Hendon (and next- door Colindale), where

regeneration of the West Hendon Estate has begun to transform the area. The redevelopment of nearby Brent Cross shopping centre will also bring new homes and amenities.

There are also plenty of 1930s properties near by too. Daniel Levine, of Winkworth estate agency, said: “Look west of Watford Way and you’ll find a two- bedroom garden flat for £400,000 that will be £450,000-plus in central Hendon.”