In Q1 2017 London’s new homes market has shown marked resilience. The downward trends of 2016 have not continued into the beginning of 2017, despite many people’s fears and a background of increasing global volatility.
Instead London’s development industry continues to send piling rigs out to new sites. And although everyone wishes it was as easy as in 2013, marketing suites across London continue to do business. If anything new homes starts and sales rates are slightly up on 2016.
- Since 2014 construction starts have exceeded sales by some 13,500 units.
- It would take just over a year to sell all new homes (both under construction and complete) across London based on the current sales rate.
- It would take eight years to sell all homes currently permitted but not started across London based on the current sales rate.
- 6,200 units started on site in Q1 2017, 4% of these are for BTR.
- 6,700 units completed in Q1 2017, 13% of these are for BTR.
- 59,000 units are currently under construction, 15% of these are for BTR.
- 5,500 units sold in Q1 2017, 14% of these are for BTR.
- 43% of units currently under construction are unsold.
- There are 1,100 completed stock units across London, up from a low of 140 in 2014.
- The average price across London is £910 psf.
- Average prices have increased by about 70% since 2009.
Half of all units under construction across London are priced between £600 and £999 psf.