A third runway at Heathrow could lead to more buy-to-let business in that market surrounding Heathrow in Hounslow and Hillingdon, Adam Male, director of lettings at Urban.co.uk has predicted.
Today the Cabinet has approved plans for the controversial third runway at Heathrow Airport, with the aim of completing the expansion by 2026.
Adam Male, director of lettings at Urban.co.uk, said: “A combination of market uncertainty and political upheaval, along with the impending introduction of a ban on letting fees, has seen the buy-to-let market remain static across much of the capital.
“That said, while the third runway will no doubt dampen the appetite of long-term homebuyers around Heathrow, the demand for rental properties should remain consistently strong.
“Those looking on a more short-term basis particularly to work at Heathrow or on the expansion itself will remain undeterred and this high demand should see rental prices increase.
“In addition, if the sales market takes a hit and prices fall as a result, the area will become even more desirable for those getting on the buy-to-let ladder, due to the increase in rental yields from falling prices and increasing rents.”
While a £2.6bn compensation fund for residents has also been announced, it will do little to comfort those with homes in the construction path, likely to be demolished.
Back in October when the decision was made to award the third runway to Heathrow, research by leading hybrid estate agent, Emoov.co.uk, highlighted that it could lead to as much as a 20% reduction in local property values.
However Jonathan Burridge, sales manager at The Mortgage Broker, agreed with Male that it will lead to more business.
He said: “It will be a substantial project requiring a lot of manpower so I’d imagine there’ll be a spike in the number of people looking to rent while work’s going on.
“I can’t see it having a significant impact in the long-term because there’s been an airport there for a considerable amount of time so people will get used to it and it’s in London so if house prices fall, they’ll recover.
“That being said, they’ll need more staff so will bring in more people, increasing demand for properties. I can’t see how it can be anything but positive in the long-term.”