Rail improvements tops list of property development opportunities

New study shows

Nearly two-thirds (63 per cent) of property investors rated new and upgraded rail and tram links as providing the most attractive real estate development opportunities from the government’s £23 billion infrastructure scheme over the next five years, according to a new study1 commissioned by Amicus Property Finance, the specialist short term property lender.

Improved road transport links (55 per cent), local authority-sponsored urban regeneration schemes (48 per cent) and airport upgrades (43 per cent) were ranked second, third and fourth respectively among property investors in terms of the potential offered by developing adjacent sites.  

Analysis of the government-backed projects on an individual basis shows that three-quarters (77 per cent) of property developers ranked Crossrail and Crossrail 2 as offering the most potential for residential schemes, ahead of High Speed 2 (51 per cent), Thameslink (47 per cent) and superfast broadband (14 per cent).2  

According to the study, an overwhelming majority (86 per cent) of UK property developers believe that their peers are increasingly looking to capitalise on opportunities generated by the new £23bn government-backed infrastructure programme over the next five years.

Keith Aldridge, founder and managing irector at Amicus Property Finance, said: “The government’s decision to invest in building new infrastructure and upgrading existing assets provides a tremendous opportunity for residential and commercial property developers and we can expect this to continue for many years to come.

“The longer term impact of this infrastructure programme on regenerating existing residential communities and creating new ones cannot be underestimated, particularly when combined with the government’s renewed commitment to addressing the country’s housing gap. We have already seen growing demand among developers seeking short term finance to fund infrastructure-related residential and commercial schemes.”

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