Neglected areas get on track

5 April 2012

If you've never fancied living in east or south-east London because of poor transport links, think again. Ambitious plans for new trams, Docklands Light Railway extensions and trains could open up previously inaccessible areas and shave valuable time off journeys into central London.

Former industrial and run-down areas to the east and south-east, including Woolwich, Stratford, Beckton, Barking, Peckham and Dalston, are prime targets for new transport links, as developers line up to build thousands of new homes, shops and offices on empty sites and convert obsolete buildings into residential properties.

Buying in an area earmarked for new transport links can pay off handsomely once the improvements are in place, says Richard Donnell, head of residential research at FPDSavills. A station or line opening in a newly regenerated area could add as much as 50 per cent to property values. In an established area, improvements such as a new Tube or DLR line could add up to 20 per cent.

But prices normally start to rise only when buyers can see the evidence that new lines are actually going ahead. Long delays on high-profile projects such as the Jubilee line have made people wary of paying premium prices until building is well advanced.

Speculating on properties simply because of promised transport links can be a risky business. Buyers who headed for Tubeless (and therefore cheap) parts of south London such as East Dulwich and Streatham hoping to cash in on the proposed East London line extension had their hopes dashed last year when the planned line was rerouted to Clapham.

Home-owners should target areas with plans for less complex new links, such as trams and extensions to the DLR, says Donnell. Such links speed up journey times, reduce congestion and have more chance of being built. "The future could be in trams and smaller projects. The issues are always how well funded it is and how likely it is to happen."

In our second article on London's development, we give you the lowdown on the planned new rail, tram and road links for the capital.

East London line extension

What's planned? A " metrostyle" train that will run on train and Tube lines. Up to 16 trains an hour proposed.

Where to? From Highbury & Islington in the north, across the river via the existing East London line at New Cross Gate, then down to West Croydon and across to Clapham Junction. New stations at Dalston, Haggerston and Hoxton.

Why? It will create a direct link between south-east, north and east London, without having to go via congested central-London stations or change from a train to a Tube. Improved links will help the regeneration of run-down areas including Peckham, Forest Hill and Dalston.

Background: the train has been on the cards since the mid-1980s. Previous proposals included a branch to Wimbledon via East Dulwich and Streatham, but a spur to Clapham via Wandsworth opens the way for a future orbital link from Clapham to Highbury & Islington. The promise of the new line has tempted buyers east and south-east and has helped keep the market stable in the recent downturn in areas such as Dalston, according to Marcus Jay of Douglas Allen Spiro.

Cost: £1 billion

Ready in: 2008

Likely to go ahead? The project received a significant boost last week when the Court of Appeal threw out an attempt by protesters to halt demolition of one of the viaducts at Bishopsgate Goods Yard to make way for the new line. Initial government funding is in place. The transport department will now come under pressure to give the final goahead to the line, which has widespread support from businesses, residents, local councils and Mayor Ken Livingstone.

DLR extensions

What's planned? Extensions of the DLR.

Where to? From Canning Town around the south edge of the Royal Docks via Silvertown to City Airport. A further extension will run from City Airport across the Thames to Woolwich Arsenal station.

Why? City Airport is expanding but currently has no transport links except buses. New stations at Silvertown will serve new developments on the south side of the Royal Docks. Millions of pounds of regeneration money are pouring into run-down Woolwich, where City buyers are signing up for apartments in the listed buildings of the Royal Arsenal. Woolwich is one of London's cheapest areas and worth a look for existing properties if you are on a budget.

Background: Initially derided as the "toytown" railway when it was built in the mid-1980s, the DLR is now a big success, with extensions under the Thames to Greenwich and Lewisham, bringing south London within a 15-minute journey of Canary Wharf and boosting property markets south of the river.

Further extensions will benefit new developments at Woolwich and Silvertown with fast links to Canary Wharf.

Cost: City Airport extension: £300 million; Woolwich: £145 million.

Ready in: City Airport: 2005; Woolwich: 2008

Likely to go ahead? Work has already started on the City Airport line. Woolwich should get the go-ahead by the end of this year. Substantial popular support, with clear benefits for developments in east London.

Crossrail

What's planned? A network of west-to-east links fanning out from a new tunnel between Paddington and Liverpool Street. New trains will run on rail and Tube tracks.

Where to? Options in the west include Reading, Aylesbury, Heathrow and Kingston. East of Liverpool Street, there could be links to Shenfield in Essex via Stratford and Canary Wharf via Charlton, Woolwich and the Royal Docks to Ebbsfleet in Kent, part of the Thames Gateway growth area.

Why? A direct link from western to eastern suburbs without having to change trains or be caught up in congestion. Eastern sections will benefit new developments in Stratford, Barking, the Royal Docks and Woolwich and link in with expanded DLR services. Western sections will benefit areas with poor transport links, such as Hanwell.

Background: Expansion of a long-standing proposal for a central-London tunnel to relieve

Cost: £10 billion

Ready in: 2012 pressure on the Central line. Strongly supported by the City and more recently an all-party group of MPs, which argues the network is vital for the future of London and the economic regeneration of the Thames Gateway.

Likely to go ahead? Waiting for approval from Transport Secretary Alistair Darling. Most of the funds will come from the private sector but the taxpayer's share will be £2.5 billion and budgets are tight. A complex engineering project.

Trams

What's planned? Two new tram routes.

Where to? The West London tram will run from Uxbridge to Shepherd's Bush via Acton, Ealing, Hanwell and Southall. The Cross River tram will run from King's Cross and Camden via Euston and Waterloo to Peckham and Brixton.

Why? Trams should speed up journey times through congested areas because they run on dedicated tracks. Routes will link up with other lines, including Crossrail and the Channel Tunnel Rail Link at King's Cross.

Background: Tramlink in Croydon, London's first modern tram, is popular with the public and has helped reduce congestion after initial teething problems and upheaval during building.

Cost: West London tram: £425 million; Cross River tram: £300 million.

Ready in: West London: 2009; Cross River: 2011.

Likely to go ahead? Still in the consultation and feasibility study stage. Substantial public support, especially for the Cross River scheme, but some concern from residents in roads off Uxbridge Road that the tram will create rat-runs of displaced traffic.

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