Coupled with a 2.9% drop in annual productivity growth compared to the previous decade is evidence that stagnation in London is a significant factor behind the UK's overall struggle to increase productivity.
The London Infrastructure Framework (LIF) is a hugely ambitious scheme aiming to unite a portfolio of strategic infrastructure projects to reshape the entire landscape of the City and drive its development into the future.
At its core, the London Infrastructure Framework focuses on upgrading and expanding the existing infrastructure network. It encompasses diverse elements such as transportation systems, public spaces, digital connectivity, energy networks, and environmental considerations. By outlining specific targets, policies, and investments necessary to accommodate London's projected population growth and ensure efficient functioning of the City's systems, the framework sets the stage for significant changes.
The implications of this framework for the real estate sector are substantial. The improvement of transportation networks, including enhanced rail and underground connections with planned extensions of the Bakerloo line and the Elizabeth Line to Kent will not only increase accessibility to various areas of the City but also boost property values and attract investment from further afield.
The proposed Bakerloo extension itself will support the development of over 110,000 new homes and 130,000 jobs. Additionally, the implementation of new infrastructure projects such as bridges, tunnels, and cycle lanes will greatly improve connectivity and stimulate development in previously underserved regions, opening up exciting opportunities for real estate ventures.
The LIF will undoubtedly contribute to the London’s future growth and prosperity. However, the LIF is likely to have grander ambitions than this – it will aim to drive innovation and productivity to benefit to the UK Real Estate sector and economy as a whole.
