Lack of new homes to push up London property prices

Date:

Tuesday 9th October 2012

More new homes are needed in London.

Residential property prices in London will almost certainly continue to rise in the long term as large increases in demand for housing in the capital over the next decade and beyond will not be matched by an upsurge in the supply of new homes being developed, new independent research published by Cluttons today shows.

London's limited housing stock is also expected to place upward pressure on rental values pushing yields higher for landlords and pricing many people out of the market in the process.

Although many housebuilders have vast land banks, a lack of finance is restricting them from building the new homes that London, and the wider country, so desperately needs. Consequently, housebuilding levels are currently only at three-quarters of the level it was between 2000 and 2007.

Tony Pidgley, chairman, Berkeley Group, said: "Housing can lead the [economic] recovery. The impact of delivering the shortfall in London alone would be 80,000 new jobs. But there is simply not enough urgency. We need clear government policy which encourages investment from home and aboard. London must welcome investors, not penalise them, if we want growth and prosperity."

Buy-to-let landlords are filling their pockets due to the high concentration of renters in the UK, particularly in London, with rents currently at a record high of £734 per calendar month, on average, according to letting network LSL Property Services.

Julian Briant, head of residential consultancy division, Cluttons, commented: "A growing and vibrant London offers a wide range of residential opportunities for both investors and developers. Small private landlords will continue to play an important role in the capital, including creating more units from the existing stock.

"However, the housing challenge we face needs radical solutions. Long term demand from highly qualified professionals at different stages of their careers and family lives presents a clear range of opportunities for investors taking a long view."

New Homes in London

Edgware Green
Edgware Green, Green Lane, Edgware, Middlesex, HA8 8EH
NOW AVAILABLE from £560,000
Edgware Green offers stylish new houses set in beautifully landscaped gardens on the edge of the Metropolitan Green Belt. Properties come with a...
Stapeley Gardens
Stapeley Gardens, London Road, Stapeley, Nantwich, CW5 7LH
NOW AVAILABLE from £335,995
Nestled on the outskirts of the Cheshire countryside, and 1mile from the historic market town of Nantwich you will find Stapeley Gardens. There will...
Kings Acre
Kings Acre, 37-45 Ducks Hill Road, Northwood, Middlesex, HA6 2SB
NOW AVAILABLE from £1,425,000
Kings Acre is a collection of beautifully crafted 4 and 5 bedroom new homes located in the west London area of Northwood. If you are looking for an...
Windsor Park
Windsor Park, London Road, Buckingham, Buckinghamshire, MK18 1AB
NOW AVAILABLE from £257,995
Windsor Park is a new development on the edge of the historic market town of Buckingham. The development offers a range of quality spacious three,...
Part-Exchange Available
Imperial Grove
Imperial Grove, Camlet Way, Hadley Wood, Greater London, EN4 0NX
NOW AVAILABLE from £1,525,000
Come and visit our stunning show home at The Penthouse, our final home available at Imperial Grove. As well as two terraces with panoramic views, it...
Windsor Park
Windsor Park, London Road, Buckingham, Buckinghamshire, MK18 1AB
NOW AVAILABLE from £295,995
On the fringes of rolling Buckinghamshire countryside is a fabulous range of new homes. Located close to flourishing Buckingham, Windsor Park offers...
Bentley Priory
Bentley Priory, The Common, Stanmore, Middlesex, HA7 3HT
NOW AVAILABLE from £824,950
Bentley Priory Stanmore is a prestigious collection of new homes and apartments just 35 minutes from London's Bond Street station, set in a...
Shared Ownership
Tetra House
Tetra House, 1a Retreat Place, Hackney, E9 6RH
NOW AVAILABLE from £120,000
Set next to the emerging fashion hub on Morning Lane, Hackney Central has emerged as one of London’s most attractive locations. Nearby are the...
Shared Ownership
Artizan Court
Artizan Court, Noel Park Road, Wood Green, London, N22 6ED
NOW AVAILABLE from £136,000
A modern collection of three and four bedroom apartments launching in Wood Green, N22 Haringey - coming soon October 2014!
Sholden Fields
Sholden Fields, London Road, Deal, Kent, CT14 0AD
NOW AVAILABLE from £219,995
Popular development, Sholden Fields is a collection of traditional two, three and four bedroom homes facing open countryside. Set within close...
Selsdon Heights
Selsdon Heights, Sanderstead, South Croydon, CR2 8RD
NOW AVAILABLE from £320,000
FINAL PLOT AVAILABLE NOW! If you've always promised yourself a new home that's just a little bit extra special, then  viewing our...
Amberley Waterfront, Little Venice
Amberley Waterfront, Amberley Road, Little Venice, London, W9 2JJ
NOW AVAILABLE from £875,000
Amberley Waterfront delivers luxury, relaxation and style in equal measures. A stunning collection of one, two and three-bedroom apartments and...