As the UK government pushes forward with ambitious plans to transform Cambridge into the nation's Silicon Valley, the city could become a hotbed of property investment opportunities.
Housing Secretary Michael Gove recently announced the establishment of a £24m Planning Skills Delivery Fund. This initiative is aimed at easing the UK’s planning system and expediting development, starting in Cambridge. As part of the plan, a “super-squad” comprising leading planners and other experts is being assembled to hasten major housing developments.
The government’s project, aptly named “Cambridge 2040,” envisions the construction of a staggering 250,000 new homes in the area, along with new rail lines and other infrastructure projects. This massive influx of residential development is set to be in addition to those already planned by the Cambridge City Council and South Cambridgeshire district council.
However, this development is not limited to residential spaces. The government aims to prioritise building in inner-city areas where demand is high, and growth is currently being constrained. This includes a proposed new urban quarter in Cambridge designed to unlock the city’s full potential as a hub of innovation and talent.
Several large companies, such as AstraZeneca and AVEVA, have expressed support for the government’s plan. AstraZeneca’s Sir Mene Pangalos enthused about the potential to help Cambridge further develop as a leading global centre for life sciences and healthcare. Similarly, AVEVA’s chief executive, Caspar Herzberg, welcomed the investment in Cambridge’s future as a global science and technology hub.
The “Cambridge 2040” plan also outlines proposals for large swathes of land for business parks, laboratories, and science hubs, paired with sustainable public transport initiatives.
If fully implemented, this transformative project could effectively triple the size of the city, aligning Cambridge’s population with larger cities like Bristol or Manchester. This expansion addresses the increasing housing demand, with the average Cambridge house price currently standing at over nine times the average salary.
Despite the promise, property consultancy Carter Jonas advises that such a project requires a strategic and coordinated approach to avoid potential pitfalls. The firm argues for substantial revisions to local plans to accommodate such extensive growth, necessitating a delicate balance between public and private sectors, along with central government support.
This ambitious endeavour is not without its challenges. It requires significant planning, coordination, and time, likely extending beyond the proposed 2040 deadline. Yet, the potential for growth and the opportunity for property investment in Cambridge is promising.
If you’re interested in exploring investment opportunities in Cambridge or need expert advice on navigating the evolving property landscape, feel free to contact us at Active Mortgages. We’re here to guide you every step of the way in your property investment journey.