Property price fall threatens London transport infrastructure, City Hall warned

Dramatic price falls in the commercial property market and delayed developer decisions jeopardise transport infrastructure that is more dependent on funding from development than in the past, a think-tank argues.

"New schemes like the Northern Line extension to Battersea Power Station and planned scdhemes like Crossrail 2 and the Bakerloo line extension are premised on developer contributions," highlighted the Centre for London, as it pointed to an expected slowdown in delivery. "The state could step in to invest to maintain London's offer to investors, but this would involve a fundamental change in mindset," it said in the report unveiled this week, Strange Days - London After the EU Referendum.

It acknowledged that Government borrowing secured against future tax revenues, through giving guarantees, through direct grants or through special purpose vehicles to attract international investment currently flowing into property were all options but would not "be straightforward or uncontroversial". City Hall told the BBC that the London Mayor was "committed" to projects being delivered.