Today’s Budget announced the green light for Crossrail 2, a new north-south cross-London railway set to link between Broxbourne and Wimbledon. The latest analysis cited by the Crossrail 2 Growth Commission estimates that it will lead to 200,000 new homes.
The Budget also confirmed an additional stamp duty surcharge of 3 percent on second home purchases. Despite hints from the Treasury that this surcharge would not apply to those who own at least fifteen properties, it was today announced that this levy would also apply to larger scale landlords. The effect of this will be additional costs for institutional landlords, which will potentially have an adverse impact on the burgeoning Build To Rent sector.
HUB Group, a London mid-market residential developer, has several developments along the Crossrail 1 route, such as the Rehearsal Rooms in Acton and the Boiler House and Material Store in Hayes (part of the Old Vinyl Factory). HUB also recently purchased a site near the planned Crossrail 1 terminus in Abbey Wood.
Steve Sanham, development director at HUB, said: “As Crossrail 1 has demonstrated, major infrastructure projects can have a serious regenerative effect and unlock new opportunities for housing by boosting connectivity within cities.Investment into key infrastructure like Crossrail 2 is infinitely more useful in helping to deliver real affordability into the market than many of the short-termist housing initiatives we have seen recently. Starter Homes will only help a lucky few, and these discounts don’t solve the structural issues that make it difficult for first-time buyers to get on the ladder. Opening up new areas of London as viable locations for housing will increase choice for hardworking Londoners looking for sensibly priced homes. A threshold on how many homes the stamp duty surcharge applies to is also crucial for institutional landlords and investors. The aim of delivering more homes will not be achieved if investors are put off from creating large developments of new homes to begin with.”