UKLI - UK's Infrastructure Boom: Where to invest now ?

A massive, long-term infrastructure plan, announced recently by the UK Government, will affect residential real estate across many locations in Nottingham and Derby, around London, Bristol and Bath, around Cheltenham and Gloucester. But will the gains be evenly distributed?

UKLI expert are keeping an eye on the current planning policies for the area and says that the UK Government is allowing more than 2400 acres of greenbelt land a year to be built on, as it admitted in a parliamentary written answer. It revealed that 162 planning applications in greenbelts went unchallenged between 1997 and last year. This is an area bigger than 15 square miles - bigger than the city of Lincoln - between 1997 and 2001 alone. This does not include the Brownfield sites that are built on within the greenbelt each year.

Investment Implications
On a micro-level, infrastructure is one of the key drivers of property prices in areas like South East of England. Land sites within walking distance of public transport, particularly train stations, are becoming increasingly popular as people want to spend less time commuting each day. Also, investors are recognizing that future homes within walking distance of public transport will be more popular with tenants and attract higher rents.
Apart from the obvious lifestyle implications of travel time to work, there is another emerging trend. As energy prices rise, motivation to live closer to work and amenities will increase. A planning policy which supports increasing density of residential dwellings in development sites centered on transport hubs will ensure this type of investment will grow faster and longer than land sites disconnected from workplaces and markets.

Category Posted: General