283: UK infra-structure and regeneration projects - chance of completion for investors
08-30-2009
PropertyInvesting.net team
There has been much talk recently of building a new high speed rail network across the UK. Here we explore the impact this could have on property prices.
Firstly a warning many politicians and civils servants will tout large project to boost their popularity or demonstrate their creative or bold credentials. Much of this work also is in good faith, but few of these project ever get the go ahead. Property investment based on speculative infra-structure projects is not advised it is far better to focus on the projects with the highest chances of being constructed.
We give our view on the chance of the projects being built below to help guide you. This is only our opinion, and the chances constantly change depending on budgets, political parties in power, the state of the economy and public spending levels and environmental considerations:
- High Speed Rail to Birmingham 50% by 2019
- High Speed Rail to Manchester 30% by 2021
- High Speed Rail to Glasgow 20% by 2021
- High Speed Rail Folkstone-Ashford-Ebbsfleet to St Pancras 100% by 2010
- East London Rail Line Croydon New Cross Gate Haggerston 85% by 2012
- East London Rail Line New Cross to Wimbledon via Clapham 30% by 2016
- Heathrow New Runway 35% by 2020
- London Brentford Regeneration 100% ongoing
- London Elephant & Castle 75% slow progress so far
- London Cricklewood Regeneration 40% - stalled in planning
London Chiswick Business Park 100% ongoing and 85% complete)- London Canning Town 70% approval granted
- London Kidbrooke SE London 85% chance go-ahead given
- London Crossrail 70% chance by 2020
- London Olympics Stratford 100% by 2012
- London Wembley 100% completed
- Gravesend-Northfleet-Ebbsfleet regeneration ongoing
- Woolwich Dockland Light Railway extension finished 2009
- Wirral Eastbank Docklands Regeneration 40% by 2015
- Salford Regeneration ongoing (final size-scope uncertain)
- Bradford Regeneration ongoing (final size-scope uncertain)
- Liverpool Duke Street area mostly complete
- Weymouth Olympics and Regeneration 100% by 2012
- Cornwall Hayle Harbour 50% by 2015
- Derby city centre 100% ongoing improvements
- Halifax ongoing regeneration with 80% chance of completion
High Speed Rail Map
London: The largest and most certain infra-structure projects are focused on London and the south-east. The area with the most overlapping firm infra-structure and regeneration projects slated and ongoing is Stratford in East London. Other areas close to new projects in London are New Cross Gate, Brockley, Hackney, Bow, Canning Town, Plaistow, Hackney Wick, Limehouse, Haggerston and Croydon.
Ebbsfleet: Further out of London, Ebbsfleet-Gravesend-Northfleet is seeing ongoing improvements from the Eurostar link to Paris and the high speed Javelin trains that wiz commuters into St Pancras in 17 mins property prices in the area are sure to move higher, particularly nice village and country property just south of the new station (Istead Rise, Greenhythe, Bean, Southfleet and into the North Downs).
Woolwich is an interesting investment area this deprived part of south-east London has seen the current financial crisis and manufacturing downturn coincide with the opening early 2009 of the new Dockland Light Railway extension to the City of London. We think as the economy improves and people start to discover how relatively cheap these properties are and how quick it is to get to the City, property price will rise higher. There are some particularly nice Victorian houses just south-east of the main town centre.
Canning Town has recently achieved planning approval for a fairly modest but important regeneration project. This fairly grim part of East London will see significant positive change in years to come with the Olympics, proximity to the City, DLR and good tube links it has to come up in the world.
Kidbrooke - the same is true of the Kidbrooke area of SE London many of the tower blocks will be demolished and new low rise quality house put in its place. Transport links are not very good, but neighbouring areas will see improvement the project is a multi-billion pound project, so it bound to see local benefits.
In summary, it is best to focus on the most certain infra-structure projects and dont risk a large part of your investment portfolio on regeneration project that may never happen. After these projects are finished and for a few years after, house prices will normally rise significantly faster than the regional and/or UK norm.
East Float Birkenhead Regeneration - Northside East
Kidbrooke Regeneration
Bradford Regeneration City Centre
Medipark Nottingham Regeneration
London Regeneration Battersea
Nine Elms Regeneration Battersea London
Hull Regeneration
Saltaire Salts Mill - near Bradford
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