Crossrail 2 and the Northern line extension to Clapham Junction could increase residential capital values along the routes by up to £32bn, research has revealed.
The study by Carter Jonas also found that the two transport projects would increase office capital values by up to £5.8bn along the routes.
Residential capital values in Euston and King’s Cross St Pancras, Tooting Broadway, Tottenham Court Road and Wimbledon could rise by up to 70 per cent compared with 2013 capital values as a result of Crossrail 2, worth around £1bn at each location.
Meanwhile Battersea and Nine Elms could also see a rise of up to 70 per cent in values due to the Northern line extension from Kennington to Clapham Junction, also worth at least £1bn in each location.
Track to the Future looked at the extent that Crossrail 2 and the Northern line project would impact London’s residential and commercial property values.
It considered both the unsupported growth scenario, covering the impacts from the transport schemes alone, and the enhanced growth scenario, looking at what could be achieved with changes to planning policy to allow for increased development in locations on the Crossrail 2 and NLE routes.
Further out of central London, the research found that Hackney could see a 40 to 70 per cent rise in residential capital values, while Dalston Junction, Epsom, Kingston, Tottenham Hale and Twickenham could see increases of 20 to 40 per cent.
“Implementing Crossrail 2 is an essential platform to London’s continued growth”
Catherine Penman, Carter Jonas
Across the office sector, Carter Jonas found stations in the central activity zone, particularly Euston and King’s Cross St Pancras, would be likely to experience the biggest increases in absolute value terms, with uplifts of more than 60 per cent in office capital values compared with 2013.
Battersea Power Station and Nine Elms were also predicted to witness substantial absolute improvements in values of more than 60 per cent, but from a significantly lower 2013 level than the central activity zone.
Speaking at the launch of the research in London, Carter Jonas head of central London development Tim Shaw said Transport for London and councils should consider whether the uplift in property values could be captured to help fund the infrastructure projects.
He added: “The impacts of Crossrail 2 and the NLE on property values will be substantial and are already demonstrated by the success of Battersea Power Station.
“However, it is not just about value increases. There will be major regeneration benefits, as well as the opening up of a range of development opportunities and we see the GLA and London boroughs playing a crucial role in providing a positive planning framework to realise these opportunities.”
Carter Jonas head of research Catherine Penman said: “With London’s population set to grow significantly, further improvements to the capital’s infrastructure are imperative.
“Not only will Crossrail 2 and the NLE significantly spread the value heat map of London north and south, the schemes will assist in regeneration terms. Implementing Crossrail 2 is an essential platform to London’s continued growth.”