Representatives of global design and consultancy firm Arcadis praised Chancellor George Osborne’s transport funding package calling it “good news” for the UK commercial developers sector.
In a response issued today, Mark Cleverly, Head of Commercial Developers at Arcadis, said:
“Today’s budget announcements confirming investment into transport infrastructure represents good news for the UK’s commercial developers sector at a difficult time in the current property cycle. A commitment to long term infrastructure investment will create renewed appetite for developers and investors in our regional towns and cities, where poor transport links have historically impeded economic growth, dragged down land values and discouraged development.
“These announcements are likely to encourage the delivery of employment hubs and housing volumes across the UK as developers and house builders become increasingly confident about the returns on offer outside London.
“The outlook for population growth and prospects for development activity rippling out to the commuter towns and locations in the South East benefitting from Crossrail 2 now look very strong indeed, whereas the Northern Power House Cities of Manchester, Leeds potentially appear set for a golden period of regeneration. These infrastructure investments could pave the way for a re-balancing of the Country and a 20 year renaissance in property development across the Midlands and the North.”
Mac Alghita, Managing Director for Infrastructure at Arcadis, said:
“It is encouraging to see that the budget allocated for transport promotes a holistic approach. It advocates that the long term wealth and prosperity of our major cities is directly linked to our ability to create economic infrastructure and transportation systems that connect these cities to each other and to the capital.
“It is clear that the recommendations of the National Infrastructure Commission have significantly influenced this budget and the industry should continue to support and provide advice to the Commission as it takes more responsibility for defining the future of transport infrastructure in the country.
“The Chancellor’s allocation for Crossrail ensures that the scheme remains alive, and provides the perfect opportunity for refinements over the next 12 months to improve the Benefit/Cost Ratio.
“This may involve refining the scope to reduce the point estimate for the scheme as well as evolving the way we currently evaluate the impact of significant infrastructure. For the scheme to progress towards construction it may be necessary for the new Mayor to attract more private funding to demonstrate that London is picking up the lions’ share of the cost.”