Firm foundations for Crossrail boost

Commenting on the laying of foundations for the new Isle of Dogs Crossrail station at Canary Wharf, Neil Young, CEO of property portfolio managers Young Group, welcomes the boost to property market confidence that the project will bring.

Neil Young, Young Group's CEO comments, "The impact of infrastructure improvements on the property market is well documented and Crossrail is a prime example of a project which will provide a much needed boost to confidence in the local markets close to the new route's stations as localised demand for property increases."

Young Group points out that historically, new stations have resulted in property prices seeing a benefit of around 10% - over and above the prevailing market movement - with the impact concentrated on station location as the epicentre, with the effect diminishing by c. 1.5% every 1km further away you are from the new station.

The statistics have been researched by the London School of Economics and use sample data from the impact on property prices brought by the Jubilee Line Extension and the Docklands Light Railway (DLR).

Neil Young continues; "The support that property prices receive from infrastructure projects is demonstrated by the new East London line extension that's currently under construction. Within 18 months of the project announcement, prices in Dalston at Young Group's development, The Interchange, increased by around 9 per cent over and above the average for London during that period.

"Even small scale transportation enhancements can have a positive local impact. For instance, within six weeks of the new pier opening at Woolwich Arsenal for riverboat services, we saw rental renewal prices increase at the Royal Arsenal development by around 10%, at a time when the market as a whole was softening."