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New-build luxury London flats expected to take the longest to sell

New-build developments in the capital’s most popular areas could remain on the market for longer and be sold with higher discounts than existing homes, according to new analysis by Coutts.

The latest Coutts London Prime Property Index (CLPPI) explored residential properties worth between £1m and £10m in 15 parts of London during Q4 2017. The report found that, with 26,000 new units currently under construction or with planning permission in these areas making up roughly half of all developments across London, there is a very strong risk of future oversupply.

Central, West & South West London currently have the largest number of new developments, with Battersea alone making up 22% of new buildings under construction. The CLPPI also predicts that luxury property prices in London are likely to stagnate for the next two years but rise quickly from 2020 as the housing market recovers.

So far, over 7,500 new homes are currently under construction, with an additional 19,000 having planning permission to be built. The top three areas where this is taking place are: Kensington, Notting Hill & Holland Park (25%), Battersea, Clapham & Wandsworth (15%) and Fulham & Earl’s Court (9%).

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