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Cycling and the Housing Market

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Cycling and the Housing Market Cycling and the housing market Summary Report 1 The relationship between transport and housing The draft London Plan sets out that, to accommodate a growing population, 66,000 new homes will be needed every year between now and 2041. The Mayor’s Transport Strategy highlights the crucial role the transport network has to play in achieving this, both by shaping the type of growth in London and shaping where growth happens, including by unlocking new homes in less developed parts of the city. Planning new developments around active, efficient and sustainable modes of transport can help create attractive, accessible areas where people are able to lead healthy lives and get around without having to depend on a car. Extending new transport connections to new parts of the city can unlock new development by improving access and transport capacity for new and existing residents. Both the Mayor’s Transport Strategy and the draft London Plan set out a strategic, holistic approach to new development. By investing in walking, cycling and public transport improvements, we will not only unlock more home-building across the Capital but ensure that this growth is Good Growth, meaning growth that is sustainable and works for all Londoners. 2 The research question Investment in walking and cycling infrastructure We wanted to undertake a similar study for by TfL and boroughs has many benefits: less cycling to help understand the substance behind congestion, cleaner air and a healthier population. the headlines, and explore the potential for However, as London’s cycle network has grown cycling and walking infrastructure to contribute in recent years we have seen an unexpected to unlocking new housing in less developed parts outcome: our new cycle routes popping up in the of London. In 2016, we commissioned Steer property pages. Articles in prominent London (formerly Steer Davies Gleave) to explore the newspapers have highlighted houses and flats for impact of cycling infrastructure on London’s sale and rent close to new segregated routes1, housing market. We set a simple, yet broad, Quietways2 and Santander Cycles docking brief: what impacts, if any, does the provision of stations3. high-quality cycling infrastructure have on the This phenomenon raises a number of relevant housing market in London? transport planning questions. What impact are new, high-quality cycle routes having on where people choose to live in London? Could expanding the cycle network help unlock more of the homes that London sorely needs? Is there commercial value in creating new developments that enhance local provision for cycling? Similar questions have been widely studied in the context of public transport. There is clear evidence, for instance, that connecting new areas to the public transport network can help bring forward development and unlock new homes for London4. The ‘New Homes and Jobs’ chapter of the Mayor’s Transport Strategy sets out how transport will be used to unlock growth potential in underdeveloped parts of London, and this is a key part of the case for investment in schemes such as Crossrail 2 and the Bakerloo Line Extension. 1. Metro, January 19 2016. 2. London Evening Standard, September 7 2016. 3. London Evening Standard, April 8 2016. 4. Travel in London 7, December 2014. 3 3 The study Steer took a three-pronged approach to highlighted concerns around of some opportunity answering this question. They begin with an costs, especially in relation to a loss of extensive review of existing international research developable space due to providing cycle parking. and studies, brought together in Chapter 2 of the For the final part of the study, a series of case full report. This review identified a number of studies was developed to highlight examples studies that found a positive link between cycling of the impact that cycling provision has had infrastructure and the housing market, although on the London housing market. This includes several studies found that cycling infrastructure several examples of major developers who have had no, or even a small negative, effect. prioritised walking and cycling in developments. Informed by these findings, Steer conducted a It also highlights the trend of references to cycle series of discussions with key stakeholders in routes in property advertisements, showing London’s housing market, including boroughs, that the cycle network is viewed as a key part of developers, estate agents, social landlords, London’s transport network (alongside local bus professional bodies and industry pundits. The routes and Underground/rail stations) by many findings from these discussions are summarised prospective renters and buyers. in Chapter 4 of the full report. There was a general consensus amongst stakeholders that creating good places for walking and cycling can have a positive impact on London’s housing supply and market more widely. As well as the role good active travel infrastructure can play to help deliver more new homes, the interviews made clear that there is increasing demand for high-quality cycling infrastructure among both renters and home- buyers. Two estate agents, ludlowthompson and Stirling Ackroyd, described how people will often look for homes within a ‘cycle time circumference’ of their workplace, and a number of boroughs and developers reflected on the increasing demand for cycle parking. Some developers felt that improving cycling provision in and around new developments can be commercially advantageous. However, others 4 Key findings Both the literature review and the stakeholder Improve the accessibility of housing in areas discussions suggested that investment in high- with lower access to public transport. quality cycling infrastructure can have a positive TfL use Public Transport Access Levels, or PTALs, impact on the housing market. In particular, it to measure the overall accessibility of different was felt that the greatest impact is realised at a parts of London, based on a short walk to the neighbourhood level: creating pleasant, attractive station or bus stop. Stakeholders felt that cycling streets that encourage walking and cycling will infrastructure can increase people’s access to improve local connectivity and liveability to an public transport, creating more accessible areas extent that additional new development may be across London. The diagram below, taken from unlocked. the Mayor’s Transport Strategy, shows how Stakeholders also felt that the provision of good access to public transport could be increased by quality cycle infrastructure can: taking cycling into account. Increase in public transport access levels associated with cycling Source: Mayors Transport Strategy 5 Play a role in providing transport provision Stakeholders were also asked if they thought required to unlock new areas for housing that cycling infrastructure could be considered development. a catalyst for the gentrification of areas. This Stakeholders felt that cycling improvements was rejected by all interviewees, including increase access to public transport, local borough and social landlord stakeholders. It was amenities and services and, where cycling felt that cycling has the potential to improve improvements contribute to reduced levels of accessibility for everyone living in an area, but traffic, can also increase an area’s liveability. it was acknowledged that more needs to be Some stakeholders felt that increased done to make cycling an appealing choice for all connectivity and liveability can help bring forward Londoners. new development proposals by increasing The most significant threat discussed by demand for the area, particularly in locations with stakeholders was a potential loss of total lower access to public transport. developable space within new developments to accommodate cycle parking. However, many Help meet the expectations of people stakeholders also identified an increasing demand moving into new developments. and expectation of cycle parking within new There was general consensus that there is developments. increasing demand for cycle parking and other cycle provision in new developments. Stakeholders also felt that people seek to live in quiet, low-car or car-free streets, which cycling infrastructure can help achieve. Improve the liveability of areas, both for current and new residents. Many of the stakeholders identified how cycling improvements at neighbourhood and network level can help create attractive new developments. These improvements, including quieter streets and connections to the wider cycle network, will also benefit existing residents as well as those moving to new developments. 6 Using this evidence in practice The research shows that the provision of high- improve local areas for walking and cycling. The quality cycling infrastructure can play a small, developers interviewed as part of the study were but significant, role in shaping London’s housing largely positive about the benefits of cycling, and market. It provides evidence to support the the report highlights case studies of ambitious proposals in the Mayor’s Transport Strategy and developments that put cycling at their heart. draft London Plan to embed active travel in new However, stakeholders highlighted that not all developments, including providing secure cycle developers have been convinced of the benefits parking and creating streets and places where of walking and cycling, and there is more work people choose to walk and cycle. to do to support the housing and development It also underlines the importance of delivering sector in prioritising Active Travel. a London-wide cycle network, not only to help We would like to see more developers follow people travel around the city sustainably, but to in the footsteps of these positive case studies, ensure that new developments and wider growth and we hope that this report will mark the start areas are well connected to the rest of the city. of a conversation between planners, developers While in general there may be less scope for and communities about how cycling can help cycling infrastructure to contribute to unlocking contribute to creating healthy, accessible and large scale development opportunities in the attractive places to live across London.
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