INDUSTRY NEWS

Crossrail could be delayed

The Crossrail development could be delayed because of falling land prices and funding problems, it has been reported.

Problems with the commercial property market may have left a shortfall of £400 million, according to industry publication, Building.

“Clearly there’s still a question about funding, particularly the part dependent on property values of both surplus property and the developed Astoria,” said former Tory transport minister, Steven Norris.

“It’s a big hole,” he noted. “It gives the Treasury half a chance to delay the projects. The question remains whether we’ll get a spade in the ground.”

Crossrail had agreed to raise £800 million from developers and sale of land belonging to its partner, Transport for London.

In order to move forward it needs to borrow £2.7 billion – this has also been called into question in light of current lending and economic problems.
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