TfL To Build Flats Above London
Published: 02/12/2019Earlier this year Transport for London unveiled plans to enter into the rental flats market by building 3,000 homes that would allow tenants to live above tube stations. Grainger PLC has now been selected by TfL to enter into a strategic partnership to build the homes for rent close to ten London Underground rail stations.
TfL has identified a number of sites where it wants to create properties above existing and future stations and car parks, or on vacant land. It is worth noting that not all of the flats will be above tube stations. So far TFL has confirmed a handful of locations for the developments:
- Nine Elms
- Canning Town
- Arnos Grove
- Hounslow West
- Newbury Park
- Wembley Park
The move would create a long-term rental income stream for TfL, which has a £1bn debt pile and has faced a number of funding challenges in recent years.
At least 40 per cent of flats up for rent will be affordable and will offer long-term tenancies. The contracts will also come with break clauses that allow renters to end the tenancy with a month's notice any time after the first six months. There will be on-site management and tenants won't have to fork out any upfront fees either.
TFL owns 5,700 acres of land in the capital - an area that Buckingham Palace and its gardens could fit in 143 times over - making it one of London's largest landowners.
It is hoped that the revenue generated from rent will help fill a near £1billion debt hole. TFL has teamed up with property agent Savills to help look for investors or property developers to lead the project. The transport body will have a 49 per cent stake while investors would have 51 per cent.