Parliament backed expanding Heathrow – ending decades of political debate on one of the UK’s most pressing infrastructure issues. MPs from across political parties joined forces to support the Government’s Airports National Policy Statement. The vote clears the way for Heathrow to submit an application for development consent for the project.
The vote has received mixed responses from real estate companies Segro and Colliers International.
Len Rosso, head of industrial and logistics at Colliers International, said: “Industrial land values and rents are already at record highs around Heathrow, reaching well in excess of £3.5 million per sq ft and £16 per sq ft, respectively. The positive outcome from Monday’s vote on a third runway has removed any uncertainty regarding development and it is likely to help propel demand and rents to even more stratospheric levels as occupiers adapt to the increased traffic flowing through the airport. While this is fantastic news for our economy, both in West London and the UK as a whole, I have deep concerns that the industrial sector will quickly find itself incredibly challenged by the severe lack of suitable land around the airport and the dearth of speculative space in the development pipeline."
David Sleath, chief executive officer of Segro, which owns over 5 million sq ft of industrial property at London’s airports, primarily at Heathrow, provides the following comment on the announcement regarding Parliament’s vote in favour of expanding Heathrow:
“The vote in favour of a third runway at Heathrow is great news. We have long supported the need for additional capacity at the UK’s hub airport - the largest port by value. The third runway will double cargo capacity, securing British trade links to the global economy. This is a significant milestone but now we must build the momentum for delivery.”