The Financial Times of 14 December reports that journey times of thousands of London-bound commuters will be slashed as high-speed domestic services start on the Channel tunnel rail route.  The new services are set to turn parts of east Kent into prime commuter territory.  Property prices are likely to rise in previously overlooked villages where homes have traditionally been cheaper.  A consultant’s report suggests that house values near the stations served by the high speed line would rise by £1.6bn, with some properties increasing by 14% in value.

None of this is unexpected, except to those who believe that new infrastructure investment can adequately be valued on the basis of the time saved by travellers.  Evidently, many travellers will take the benefit in the form of enhanced access to more distant destinations, such as homes in quiet villages.  Existing land and property owners will benefit from windfall gains.  The true benefits of investment are location-specific access benefits, not time savings.