More than 28,000 private homes were started across London in 2017, a near flatline on the corresponding figure for both 2016 and 2015.
In a slowing market, and with uncertainty around both the political landscape as well as the economy, a plateau in the capital’s construction programme (which was already at record levels) will be seen as a huge success.
Many commentators over the past year had talked the market down, with stories of housebuilding levels plummeting, in the face of falling prices, especially in central London at least.
Whilst that may be partly true, it is the outer London boroughs which have come to the rescue, with market dynamics resulting in a dispersal of home building further into zones 4, 5 and 6.
James Murray, deputy mayor for housing and residential development, said: “The figures are a clear indication of where we see the market heading, and where in fact we believe it needs to go.
“Along with our small sites policy, our approach to affordable housing and the increase in housing capacity targets across the outer boroughs, means we are seeing more housebuilding across outer London, providing more homes at levels that Londoners can afford.
“We believe London has previously relied too heavily on large sites in inner London, at prices well beyond the reach of most Londoners.”
It is an obvious fact that with a greater proportion of homes being built across outer, rather inner London, more homes will be sold to owner occupiers, rather than overseas investors.
Much of the shift will be down to economic rather than planning policy factors, but as Murray puts it “with land values and land capacities providing the chance to build a greater number of homes across the outer boroughs, now is the time to seize a huge opportunity for well-designed developments where housing densities are increased, especially around existing infrastructure”.
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