New analysis of LOREMA and Land Registry data by London Central Portfolio (LCP) has revealed a deepening new-build crisis in London.
The number of new developments approved for construction has surged again this year, with a 20% increase in the planning pipeline since 2013, representing 106,208 new units. This pipeline is largely made up of projects in the 'mega cluster' areas around Tower Hamlets and south of the river in the Battersea-Nine Elms area, where there is already a proliferation of new developments.
This year, a further 33,239 and 18,665 units respectively are scheduled to be built in those areas. New applications have also sky rocketed. Applications for 17,494 new units, including 111 towers (classed as buildings over 20 storeys) have been submitted, a 27% increase on 2013. This is equivalent to one new tower application every three days. Of those applications, 90% are located in the boroughs of Tower Hamlets and Wandsworth (home to the Battersea-Nine Elms area).
Despite the ever increasing number of new developments, however, statistics have shown that the attraction of these new properties, where prices now average £914,532, is waning. According to LCP's analysis of the Government's Land Registry data, only 1,491 new units have been sold so far this year, a substantial 43% decrease on the same time last year. This compares with older properties in Central London where transactions have remained static, 13,194 in 2016 compared with 13,190 over the same period last year.