Transport for London (TfL) has suffered a difficult year, after a £700 million a year government grant was axed, passenger numbers fell and a Sadiq Khan introduced a partial fare freeze. Add to this the delay with Crossrail that means TfL will have to wait another year until it starts seeing money coming in from the new Elizabeth Line, and the company’s near-£1 billion debt, it is not surprising that it is looking for innovative new ways to bring in funds.

As a result, the firm has announced plans to enter the residential market by building 3000 rental homes across 10 of its sites in London and has hired property agent Savills to find a joint-venture partner by March 2019, with a view to starting construction by 2010-2021. As part of any deal, TfL will take 49% and the investor 51%.

Director of commercial development at TfL, Graeme Craig, says of the plans: “We are one of London’s largest landowners and our sites are in the best-connected parts of the capital. Build-to-rent provides us with an unrivalled opportunity to deliver affordable homes at pace while also generating money to plough back into the transport network.”

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