London developments to increase house prices
We previously wrote about the impending Olympics and their effect on the house price market in south east London. Aside from this grand event and its effects on Shoreditch, other areas in and around London have recently sparked conversation regarding major development work and how they may affect house prices in those areas -
London’s new Crossrail:
The city’s long awaited £10 billion Crossrail link has been given the go-ahead. It will act as an extension to the existing DLR, providing faster and more efficient transport between areas in the all four North, South, East and West London.
Alongside several rail improvement plans between 2010 and 2013, the biggest winners in the property market will be locations where large infrastructure projects converge, or where transport links are limited at present. Knight Frank’s 2009 London residential review found that West Drayton, Hayes, Southall, Hanwell and several universities and business parks would be strongly affected. Stratford, already in demand from the Olympics will also continue to benefit from the completion of the Crossrail.
Westfield’s shopping centre:
In the past, flats and houses in Shepherds Bush’s have lagged behind such upmarket neighbours as Notting Hill and Chiswick. But Westfield, the newly built mega-mall of London has already begun extending long-term improvements to the neighbourhood. The developers have helped finance the refurbishment of Shepherds Bush Central Line Tube station, a new Hammersmith & City Line station (Wood Lane), a new over ground station and a face lift of Shepherds Bush green, a rundown common space. By providing some of the best transport links in London, moving there will become even more valuable in the current climate, where punctuality at the office is essential.
The recession/construction dilemma:
Peter Rogers, chief executive of the London Development Agency has stated prices will rocket unless construction continues at a steady rate throughout the economic downturn because of pent-up demand.
50,000 affordable homes were promised by London’s Mayor Boris Johnson last year, but construction has been abandoned. The LDA are pushing for private ownership through equity release schemes while trying to promote development. These 2 factors are important in kick-starting the construction industry so that demand won’t exceed supply when the economy stabilises.
Thoughts?
There are many in the current climate that would be happy to hear of rising property values, as many homeowners are desperate for the market to recover so that they could re-coup their investments. However, this news will undoubtedly cause worry to a lot of prospective first-time buyers, who may be keen to capitalise on low lending rates and cheaper properties. So which camp do you belong to? Have these projects affected prices in your area? Chime in below and let us know your thoughts.
