By Maurice Shasha
// Mon 30th
Why central London is still one of the best parts of the capital in which to invest in property.
It has been six months since the UK voted to leave the European Union. Although it is early days and the future is far from certain, there has not been the dramatic fall in property prices some people predicted. There was, however, a cooling off in prices just after the referendum.
CITY A.M. reported a drop of 0.83 % in property values in the W1 postcodes. The report did add a caveat that the figures were taken during the holiday period of July - August 2016. This is a time when interest in property is seasonally low, and the drop in value was hardly cause for panic.
Another report indicated that some areas have seen an increase in value over the last twelve months. The NW8, SW3, and SW1 postcodes have experienced a small rise of around 0.66% and 0.75% respectively, while the SW7 postcode has seen a 2.5% increase in value.
Whether these variations in prices are due to the outcome of the referendum is difficult to say, but there is another factor affecting property prices now, which will probably continue to do so in the near future.
The Crossrail project is one of the most important factors that is, and will continue to affect, property prices. The first stage of this huge infrastructure building project, the east to west Elizabethan Line, will
be completed in 2018.
But already Crossrail 2, a railway connection between Broxbourne in the Hertfordshire commuter belt and Epsom in Surrey, is on the horizon. This line will open up the Lea Valley in the east of London.
Many pundits are saying the Crossrail projects will have the same impact on life and travel as the early railway expansion did in the late nineteenth and early twentieth century. This made it possible for people to commute to and from work, and created a huge demand for new houses.
However, we are getting ahead of ourselves. The completion of the Elizabethan Line, the first Crossrail, will be the project that will affect property values both now and in the near future.
Since Crossrail was given the go ahead in 2008, the prices of property around the stations on the route have increased considerably.
However in 2008, no one knew there was going to be a referendum on membership of the European Union, and no one knew the result would be a vote to leave. The vote to leave may or may not have been the reason for the slowdown in prices in some areas of Central London.
But this does not mean Central London is no longer a place to invest in. Prices in the WC1, EC1 and N1 postcodes have seen an average of 3.4% increase in property prices. These areas contain Farringdon, Bloomsbury and Clerkenwell, and all are close to the Crossrail stations of Tottenham Court Road and Farringdon. In addition, there have been recent signs of a small recovery of 0.60% for property prices in the W1 area.
Although no one can accurately predict what will happen to property prices in the future, we all know markets do not like uncertainty. But whatever happens, London will still be in demand from people who want to live in one of the world’s most vibrant cities. This makes Central London a great place to invest in.
If you need further information regarding property in Central London why not contact us today and let us help you find a property for you?