Transport for London (TfL) has recently announced that they’re planning to build three property developments in the UK’s capital city.
TfL – the government body which is responsible for most aspects of the transport system in Greater London – has previously said that it plans to raise £3.4 billion in non-fare revenues by 2021. TfL commented that they want to generate these funds so that they can “reinvest in London’s transport network, supporting jobs and economic growth in London and across the UK.”
As Simon Morris recently noted, In October TfL revealed they would build 10,000 homes across London, Bath and the South East of England to raise £1 billion. The authority owns 5,700 acres of land across 3,000 sites in London. At the time they said that they had shortlisted 75 sites throughout the UK capital for residential and commercial property development.
TfL have now announced where the first three developments will be. City A.M. reported that the authority has submitted planning applications in Nine Elms, Northwood and Parsons Green. When completed these sites will provide London with 600 new residential properties, as well as a range of “high quality public spaces,” retail units, and work spaces.
They will build 362 new homes – 25% of which will be affordable – in Nine Elms. TfL will also construct a new public square, 6,000 square feet of retail space, and 25,000 square feet of office space in the area. This development is also likely to prove popular with house buyers and businesses looking for offices or retail premises, as it is in addition about to benefit from a £1 billion extension of the Northern Line.
Meanwhile TfL said that they will construct 127 new homes in Northwood – 20% of which will be affordable. These residential properties will be accompanied by 14,000 square feet of retail space and a new tube station. Finally the transport authority will construct 119 of the new homes on a former London Underground depot, next to Parsons Green Tube station; 40% of these will be made affordable. This site will also feature 43,000 square feet of restaurants, retail space and office space.
Demand and supply
In Simon Morris’ opinion, TfL’s residential and commercial property developments will likely prove attractive to buyers. Average London house prices and office rents have both consistently risen throughout 2015, but the UK capital still lacks the supply needed to meet demand. This imbalanced demand and supply ratio has ensured that London property developments often sell out before they’re completed – so TfL’s developments are likely to record the same success.