News that the Airports Commission has rejected a new airport in the Thames Estuary – championed by Mayor Boris Johnson – as a viable solution for London’s air traffic expansion needs is expected to boost the property markets in those areas that would have been affected, namely Thames Estuary, Medway and South Essex.
Research by an on-line property portal showed that in February, Medway had a demand index of 59 per cent, the 15th best place in the UK for demand versus supply. But in July this dropped to 37 per cent, a 22 per cent reduction in buyer demand and confidence, which was more than any other large town or city in the country.
“With the sinking of Boris Island, we now predict local property prices taking off,” a spokesman for the portal said. “In our Property Hot Spot Index release in June, Medway, the epicentre of properties that would potentially be affected by Boris Island, saw the biggest fall in demand of all UK areas. Consequently we are predicting a significant rise in house prices along the North Kent coast now that Boris has lost the battle of the skies in the Thames Estuary. If you live in the Medway area, Canterbury, Whitstable, The Isle Of Sheppey etc, expect to see a rise of at least 20 per cent plus in the next 12 months.”
It is not good news for all homeowners in the local area as the development of Thames Estuary airport would have seen huge investment into transport links in Chatham, Ebbsfleet and Southend, which would have helped increase property prices because of the lucrative London commuter factor.
It’s not yet known where an airport expansion will be confirmed in the South East, however property prices in Gatwick and Heathrow are unlikely to see such change as they already have established airports.