A new housing development next to a tube station in Hounslow is set to become one of the first projects involving Transport for London’s new property company.
Transport Trading Limited Properties (TTLP) is to build homes as part of its bailout settlement TfL agreed with the Government in September 2022. The DfT agreed to provide TfL with £1.2bn up to March 2024. This followed four short-term emergency deals, totalling about £5bn, since the first Covid-19 lockdown in March 2020.
As a condition of the funding, TfL is required to become “financially sustainable”, which includes operating expenditure, capital renewals, servicing and repaying debt, and capital enhancements.
In 2021, TfL published proposals for a “dedicated, self-financing property company” to deliver housing. This led to the setting up of TTLP, which became financially separate from TfL on 1 April 2022.
TTLP has raised £200m of secured debt to fund commercially viable projects across 5,000 acres. The firm plans to deliver 20,000 new homes over the next 10 years. It is currently building 1,700 homes, with a further 2,400 homes scheduled to come forward this year.
Last month Hounslow Council approved plans for the development of 348 new homes. Anjna Farmah, property development manager at TfL, said: “We’re thrilled that the plans to deliver 348 brand new homes - all of which will be affordable - next to Hounslow West Tube station have been approved by Hounslow Council. Working together with A2Dominion, we are using our land to help tackle the housing crisis and deliver the high quality homes the capital urgently needs.”
The proximity of the scheme to the station, as well as local bus routes means that new residents will easily be able to travel sustainably across the capital using public transport, said Farmah. Residents will also find it easier to cycle as they will have access to substantial residential cycle spaces, she added. The homes are designed to be effectively car-free, with only Blue Badge parking spaces being provided for residents.
TTLP is also planning to build 351 new homes on Cockfosters Underground station car park.
The 40% affordable development, including four tower blocks of up to 14 storeys, was stalled in March 2022 when the then transport secretary Grant Shapps invoked a legal power preventing the disposal of “operational” TfL land without ministerial permission. The firm is now looking to submit a new application to current transport secretary Mark Harper.
It added: “TTLP is facing the same issues as much of the construction industry, including disruption and delays caused by the pandemic and Brexit, including a labour shortage and rising construction costs. In the case of TTLP, there is an added challenge that building largely on existing TfL land, which tends to be above and around the transport network, creates additional cost and complexity to projects. Despite this, TTLP is delivering 50% affordable housing across its programme.”
TTLP says it can play a vital role in meeting the Mayor’s priorities to build affordable homes, while generating revenue towards operational improvements such as electrifying bus depots.
Find out about other TfL property plans here
Anjna Farmah will be speaking at the annual Rail Stations and Property conference 2023 in London on 22 February.
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