New home planning approvals up in London quarter on quarter
The number of planning application approvals for new homes in London increased by 46% in the second quarter of 2016 compared to the previous quarter, the latest data shows.
Some 6,310 new homes were approved out of a possible 8,280 that could have been permitted across the quarter, a 76% approval rate, according to the London New Homes Monitor from estate agents Stirling Ackroyd.
However, approvals and decisions fell year on year. The second quarter of last year saw 8,063 new homes, out of a possible 10,662, granted permission but this was down to 6,311 allowed in the second quarter of 2016.
‘London has had a tough time lately, as Brexit injected a dose of uncertainty into the property market. In spite of this, the number of new home approvals improved in the run up to the result,’ said Andrew Bridges, managing director of Stirling Ackroyd.
‘There may still be an impact to come but for now, this pick-up is a sign that London’s property market is resilient. It’s a new game of unknowns and London could emerge a winner,’ he added.
The most approvals were in Westminster at 1,720 new homes with 99% of all new home applications received approved, the highest rate in Greater London while Newham recorded the lowest approval rate across London, rejecting 92% of potential new homes applications.
‘Westminster is soaring ahead in terms of approvals and applications, but these are unlikely to be affordable for the typical Londoner. Many in the capital are left feeling let down as affordability drives them further away from a home of their own,’ Bridges pointed out.
Bridges believes more needs to be done with research by the firm suggesting that there is space for up to 570,000 new homes in London in the next 10 years and he added that a more efficient planning system would help.
‘Planning reforms are still on the government agenda for now and they need to stay there. Overall, more resources and time need to be committed to achieve the number of new homes London needs. Having a new home can transform lives and London has always been an aspirational city,’ he concluded.
