The overall strategic housing growth in East (26.3%) and North West London (39.1%) is set to drive London’s new homes market. That is, if the Mayor’s Vision for London is achieved by 2029, according to the latest Land and New Homes Report released by London property group, Kinleigh Folkard & Hayward (KFH).
The report talks to the significant opportunity that exists, to contribute to the way the future homes of London are delivered. In terms of London’s planning pipeline, 20% of all schemes are currently at application stage, up from 13% in 2017. The percentage of schemes seeking to deliver 20+ units (8%) and the number of proposed units (14%) also increased in 2019 when compared to the start of 2017. See full breakdown in chart (right).
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 £600k Help to Buy threshold.
John East, Director at KFH Land and New Homes, said, “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. 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.”
The research, ‘Building a new future’, takes a look at activity across London’s planning pipeline and how this is scoring against housing targets. It also analyses where London’s new homes are being located and explores potential opportunities for developers.