The construction figures regarding new homes in London have been fairly lackluster over the past few years. 2012 saw only 20,300 homes built and although this figure increased slightly to 28,500 in 2013, it represents just over half of what is required. With increased confidence in the market and lending at its highest level since the credit crunch, demand for new homes has never been stronger and purchasing off-plan is a desire for many. As we move into the new year, these significant levels of demand look set to rise further, so news that the Mayor of London has committed to building 42,000 homes a year for the next decade is extremely welcome and should go a long way to meeting the appetite of local and international investors.
2013 saw the launch of many major schemes in London and it certainly seems as though sites south of the river are a particular target among both developers and buyers. The Nine Elms regeneration is having a positive effect on many parts of South West London and the impact can already be felt, despite being a few years away from completion. Phase one of the Battersea Power Station sold out in a matter of weeks and news that the extension to the Northern Line could be designated as Zone 1 will be a very motivating factor for both investors and owner occupiers. The nearby redevelopment project at Clapham Old Town around Clapham Common station will see the existing area transformed into a pedestrian focused urban piazza – in much the same way that Brixton has recently benefitted. Expected to complete in Spring 2014, many developers are hoping to capitalise on the new look and feel of the area and I anticipate that the green open spaces of the common, the convenience of good transport links and improved local amenities to the local bars and restaurants will be appealing factors for many buyers. Nearby we are marketing a great mews development called Kings Head Passage in Clapham Park Road which offers a selection of beautiful two bedroom mews houses set in a gated courtyard which range in price from £720,000 to £760,000.
A little further up the road in Kennington, an area which itself has been the subject of improvement over recent years, is an interesting scheme which we are marketing. Located just off Lambeth Walk and approximately 15 minutes’ walk from Westminster, is Baylis Old School by Henley Homes. This development will not only bring 89 much needed new homes to the area, but it will also help to regenerate and give a lift to an important part of London with a fascinating history. Previously a Grade II listed school, the site is being sympathetically converted to offer properties ranging in size from one to four bedrooms with prices starting from £399,950, while the larger houses will exceed £1,000,000 when they are sold. This is an important scheme for the area which has in the past suffered due to a lack of stock and the comprehensive variety of properties will cater for a wide range of tastes. Pre-release enquiries have been strong and in testament to the high levels of demand currently being seen, a number of buyers have already reserved units before it launches in late January 2014.