Commenting on today’s announcement that BAA will inject £230 million to London’s Crossrail project, Neil Young, CEO of property portfolio managers Young Group, welcomes the boost to property market confidence that the project will bring.
BAA’s £230 million commitment to the Crossrail project comes hot on the heels of Canary Wharf Groups’ £100 million pledge as part of the planning approval of its new Wood Wharf development in London’s docklands.
Neil Young, Young Group’s CEO comments, “The impact of infrastructure improvements on property prices is well documented and Crossrail is a prime example of a project which will provide a much needed boost to confidence in the local markets close to the route’s stations.”
Young Group has identified that historically, new stations have resulted in an uplift of around 10% in property prices – over and above the general market growth, with the impact concentrated on station location as the epicentre, with the effect diminishing by c. 1.5% every 1km further away you are from the new station.
The statistics have been researched by the London School of Economics and use sample data from the impact on property prices of the Jubilee Line Extension and the Docklands Light Railway (DLR).
Neil Young continues; “The support that property prices receive from infrastructure projects is demonstrated nicely by the new East London line extension that’s currently under construction. Within 18 months of the project announcement, prices in Dalston at Young Group’s development, The Interchange, increased by around 9 per cent over and above the average for London during that period, which provided our purchasers with a healthy cushion against the current conditions.”
Neil Young, CEO – Young Group, is available for interview
About Young Group
Young Group specialises in providing Property Portfolio Management services to private investors, offering the best off-plan direct investment opportunities and end-to-end management service in London.
Young Group manages the entire investment process from sourcing the opportunities through to financing, furnishing and letting. Young Group owns all the property that it sells, and also retains a number of units in each development for its own portfolio. As the principal in every transaction, Young Group does not realise any profits until completion and has transacted in excess of 1,700 apartments, with a retail value of more than £700 million.
The majority of our units are bought by private high net worth clients for their own portfolios. The Group’s portfolio managers liaise with the Young London (www.younglondon.co.uk) estate agency team in advance of completion to let investors’ apartments to quality tenants, often through corporate lets.
Young Group clients have access to all available finance products via Young Group’s FSA regulated mortgage desk, Young Finance (www.youngfinance.co.uk). Young Finance is an appointed representative of Thinc Assured Network, one of the UK’s largest financial advisory firms and is not tied to any group of lenders, nor does it charge commission or transaction fees.
• Young Group’s iconic Canary Wharf development, The Landmark (www.TheLandmarkE14.com), has been awarded two Daily Mail Property Awards in the categories of best high rise development and best high rise architecture. The Landmark East Tower rises to a height of 459 ft, making it one of the tallest residential properties in Europe.
• Young Group’s COO, Sylvana Young, has been named Bradford and Bingley’s Property Woman of the Year, 2008 for London.
Young Group supports NORWOOD and CHILDREN with LEUKAEMIA, two charities particularly close to our heart, donating £50 per property exchange and providing additional support throughout the year. Visit www.younggroup.co.uk to learn more.
About Young Finance
Young Finance (www.youngfinance.co.uk) is an appointed representative of Thinc Assured Network, one of the UK’s largest financial advisory firms and is not tied to any group of lenders, nor does it charge commission or transaction fees.