As London Property Finders it is our business to know what’s going on in London, and the creation of two new tube stations is certainly big news in the property world. The Chancellor gave his backing to the proposed ‘Northern Line Extension’ at the end of November. This is part of a wider Nine Elms Regeneration project and the government is hoping to tempt developers into contributing towards the scheme, which is estimated to cost between £750 million and £950 million. With an agreed programme in place by 2013, the construction of the line extension is set to begin in 2015. It will involve extending the Charing Cross branch of the Northern Line from Kennington further south-west, and creating two new stations: Battersea and Nine Elms.
Nine Elms is a 200 acre stretch of undeveloped land south of the river opposite Pimlico. Situated between Battersea Park and Vauxhall it is just over 3 miles from Covent Garden. The re-development of the iconic Battersea Power Station and Tideway Wharf into luxury flats is something that has been discussed for at least twenty years, and there have been more recent plans in place for the US embassy to relocate here from Mayfair in 2017. I believe that the Northern Line Extension is the key to ensuring the successful re-development of this area – a sentiment the developers involved share. This is best shown at http://northernlineextension.com/ where a website has been created and consistently updated with positive news stories relating to the scheme.
Knight Frank ear-marked Nine Elms as one of its 2012 “Hot Spots”. They have predicted an 140% increase in property values by 2016, with people paying around £1,800 per sq. foot, compared to £750 per sq foot which property currently achieves in the area. The new tube links will bring this area within 11 minutes of the West End and the City. In central London, location and travel-time are more often than not discussed in terms of tube stations and tube journeys and by putting Battersea and Nine Elms on the tube map it makes the area more attractive to young professionals, increases demand, and increases property prices in the area. At Manse & Garret Property Search it is unlikely that we will see many of our clients looking to buy in this area, as end-users. Some of our investors may be interested purchasing property here as buy-to-let investments, but we certainly won’t be buying for them at £1,800 per sq foot!