The UK government approved a landmark third runway at London’s Heathrow Airport this week. DMZ has compiled an exclusive wrap-up of opinions from London’s Real Estate movers and shakers on the news.
First out of the blocks was London Mayor Sadiq Khan who blasted the news, “I will continue to challenge the decision…a new runway at Heathrow will be devastating for air quality across London”. Tory MP for Richmond Zac Goldsmith was next, swiftly resigning in protest.
Son of the Billionaire businessman Sir James Goldsmith, Old Etonian Zac had promised to resign if the runway was approved.
Transport Secretary Chris Grayling hailed the “momentous decision” as a “great deal for business”. But his fellow Tory cabinet member, and Notting Hill resident Boris Johnson, snapped back calling the third runway “undeliverable”, adding “I think it very likely it will be stopped.”
So how will this really affect the London Real Estate market? eMoov CEO Russell Quirk predicts homeowners in the surrounding areas of Kew, Windsor and Maidenhead “are likely to see the value of their property blighted, as a result of a lengthy construction process and ongoing noise and air pollution”.
Buy-to-let landlords might fare better. Owner of BTL brokerage Lee Grandin sees decent growth potential around Heathrow, “flats and smaller houses will see a significant increase in demand from workers moving to the area”.
Assuming prices drop off, this increased demand could pump up the yield potential for any DMZ’ers thinking about a Heathrow-to-Let option.
DMZ is fully behind the Heathrow expansion, but we are also behind a further Gatwick runway too.
If a post-Brexit London wants to be ‘open to everyone’, we have to expand our infrastructure projects. Runway-wise, Heathrow lags way behind European cities. Compare Heathrow’s 2 to Frankfurt (4), Paris (4) and Schiphol (6)!
The main concern is environmental; the death toll attributed to London pollution stands at 10,000 per year. We need more runways, but we need a way to effectively mitigate this air pollution in the capital.
The final decision on Heathrow will be put to MP’s for a vote in winter 2017/18.
Want to know the story behind Britain's latest property mogul? Why a company is going bust? Our coverage goes beyond run-of-the-mill news on key real estate issues.
Our subscribers are made up of the most influential Founders and CEO's in UK property. Gain a competitive edge and get informed - read what they read.
Understand exactly what the most senior figures in UK property are thinking. Exclusive opinion articles from powerful real estate influencers that move markets.