Oliver Knight, partner and head of residential development research, Knight Frank
The South Bank emerges as a focal point for prime delivery amid supply disruptions elsewhere
New homes reshape the character of cities; a single bold development can shift perceptions and redefine neighbourhood boundaries.
Nowhere has this been more evident than in Prime Central London, where for more than a decade developers have steadily extended the edges of historic enclaves such as Mayfair, Knightsbridge and Belgravia. While wealthy buyers still gravitate to these areas, they now have real competition from Bayswater, Bloomsbury, Marylebone, Fitzrovia and the South Bank, where regeneration, cultural cachet and new development are reshaping the prime map.
The pandemic and subsequent spike in interest rates accelerated this trend. Construction dropped sharply across much of the capital as viability pressures and regulatory burdens mounted. Developers were constrained by a combination of persistent build cost inflation, labour shortages and complex regulatory frameworks – you can read more on this in Knight Frank’s latest Residential Development Land Index. Fire safety legislation further delayed starts, especially on high-rise urban sites, limiting the pipeline of new development in central areas.
Supply is becoming tighter in some of London’s housing hotspots, but a handful of prime locations escaped the worst of these obstacles – either because key developments secured planning and broke ground before the pandemic, or because their design avoided the most restrictive hurdles, such as fire safety regulations on building height. The South Bank is one of them; key schemes such as Opus, The Edit, and SEVEN at Southbank Place all secured momentum early, drawing in prime purchasers while there were fewer schemes underway elsewhere.
Southbank’s shift
Molior data for the entire capital shows the degree to which these challenges have distorted delivery. Just 1,210 units started on site in London during Q1 2025 – the lowest quarterly total since Q1 2009. Of the 33 local authorities across London, 23 recorded zero starts. The future supply pipeline also looks thin: only 7,100 private homes are expected to complete in the two years from 2027 to 2028, based on the schemes currently on site. Sixteen boroughs are set to deliver no completions at all during that period.
Prime boroughs are among the worst hit. In the boroughs of Westminster and Kensington & Chelsea, just 326 new homes broke ground during the year to Q1 2025. That stands in contrast to Southwark, home to the South Bank, where 1,245 homes started during the same period, bringing the scale needed to further embed its status as a residential neighbourhood.
The most visible sign of Southbank’s shift is Opus, a 50-storey residential tower being developed by Native Land as part of the larger Bankside Yards regeneration project. Positioned yards from the River Thames, the building is one of only three 20+ storey residential towers currently under construction in Central London – the others are at Chelsea Waterfront and Southbank Place. Project sales have surpassed £100m, Native Land announced in June.
Pricing at Opus indicates a willingness among some buyers to pay a premium for specification and views, with higher per square foot values on the upper floors that come with panoramic views. This positions Opus at the upper end of the market for new-build homes in the area, reflecting its role within the broader South Bank development pipeline. Many buyers are domestic professionals, often working in finance or law, with interest supported by the area’s proximity to cultural institutions and key central locations such as Covent Garden and Soho.
Branded residences
Mount Anvil’s The Edit provides a smaller-scale alternative to high-rise living, with a focus on wellness and contemporary design. The scheme includes lifestyle features such as ice baths and infrared saunas and is located less than 400 metres from the Tate Gallery.
The South Bank was arguably cemented as a prime London location as early as 2023, when the Mandarin Oriental Hotel Group confirmed plans for a new hotel and branded residences at Bankside Yards. The 70 homes will sit above 171 guestrooms in a standalone building. The project is part of a growing branded residences sector that is gaining traction globally.
Evidence to date of £psqft values in Bankside Yards set a new benchmark for a relatively recent addition to Prime Central London, but it’s not unexpected given the strength of the brand, the riverside location, and the cultural significance of the surrounding area. As delivery in traditional prime markets slows under the pressure of build costs and complex regulation, the South Bank has taken advantage of its early momentum. Its trajectory highlights a subtle but important shift in the geography of London’s prime market – one driven as much by supply dynamics as by evolving buyer preferences.
