The overall strategic housing growth in East and North West London is set to drive London’s new homes market, according to a new analysis.
The East is set to see growth in new home building of 26.3% and the North West of London a rise of 39.1%, says the latest Land and New Homes Report released by London property group, Kinleigh Folkard & Hayward (KFH).
The report argues that significant opportunity that exists, to contribute to the way the future homes of London are delivered.
The number of schemes within the planning pipeline seeking to deliver 20 plus units are up
18% at the start of 2019 compared to the start of 2017, while the number of proposed units has increased by 14%.
The report also points out that the proportion of schemes, and units, at application stage has been rising steadily in London since January 2017, with one in five 20 plus unit schemes and 15% of units currently at application stage.
The buoyancy of the first time buyer market in 2018 has also directly affected demand for new homes, with two thirds of London’s new build homes falling within the £600,00 Help to Buy threshold,’ it also points out.
‘Although London’s development market remains stoic due to the uncertainty of the political and economic landscape, there are signs of renewed activity across the Capital’s planning pipeline in 2019,’ said John East, director at KFH Land and New Home.
‘We will have a decade of building and change on the horizon if the Mayor’s London Plan is approved. This, coupled with the Government’s Help to Buy scheme successfully enticing first time buyers, will see London’s skyline look markedly different as tall towers increasingly dominate developments,’ he added.
Across London, one in every seven properties sold during 2018 was a new build property, although this masks significant variation across the city, the report says. New build property accounted for one in every five property sales across East London, due to significant development across Newham and Tower Hamlets while across South West London the proportion was just one in every 10.
Overall, apartments dominate new build sales, accounting for nine in every 10 new build properties sold across the capital during 2018.
