Transport Links Could Affect Your Investment Strategy

Easily accessible, efficient transport links have a tremendous impact on property values and should be considered as you formulate your investment strategy. When transportation systems improve, property values tend to increase.

For example, a high-speed rail line between London and Birmingham carrying the European double-decker trains that can reach up to 190 mph could reduce transit time between the west midlands and St. Pancreas or Stratford from 90 minutes to 45 minutes. Though not final (as of September 2007), it is expected to be approved with construction beginning in 2017. Desirability of locations with easy access to rail stops will increase when the service is implemented—and that should drive up property values.

Another example is Thameslink 2000, an upgrade of the north-south route across the Thames River. This project has received planning permission and is targeted for completion in 2015. The completed expansion of the Jubilee line and the Docklands light railway towards Greenwich and Lewisham has already proved popular with commuters and has been credited with generating growth and higher house and rental prices in south London.

Thanet and Kent can expect to see drastic changes in their transport links over the next ten years. High-speed trains planned from Ramsgate and the coast to central London will cut journey times down to well below an hour.

The lesson here is to thoroughly research your local market, not just as it is today, but as it might be in five, ten, or even fifteen years. Look at local government websites as well as the Department of Transport site (www.dft.gov.uk) for information regarding future land use and transport link plans. Don't just buy and hope for capital growth. Instead, do your research and buy in the path of progress to secure the best possible capital growth on your investments.

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