London is about to see a tall buildings boom as the “Ken effect” begins to take hold.
According to new research, over the next 18 months, work is set to start on as many residential buildings of 20 storeys or more as have been built in the capital during the past 10 years.
Seven residential towers are under construction in London, including three in Docklands: Ballymore’s Pan Peninsular and Ontario Tower as well as Ability’s Ability Place. And developers across the capital are starting work on a further nine towers in 2006 and 10 next year.
London Development Research and EG sister company London Residential Research say that the “Ken effect” – a rapid change in future supply numbers, driven by mayor Ken Livingstone’s enthusiasm for high housing density – has been seen in both planning applications and permissions for tall buildings over the past four years.
Towers set to be started in 2006 include Barratt’s 437-unit Elektron Building, E14; Empire Property’s 268-unit Pioneer Market in Ilford, east London; and Galliard’s 236-home Seager Distillery & Norfolk House, SE8.
Schemes set to start in 2007 include Multiplex’s 408-flat Castle House at Elephant & Castle, SE1; Circadian’s 420-unit Lots Road Power Station, SW10; PDCL’s 223-flat Merchant Square, W2; and Capital & Provident’s 1,472 flats at Peruvian Wharf, E16.
But the already high supply of new homes in the Docklands area has been blamed for poor price growth. This week, Savills announced that prices in its “east of City” area rose just 2.2% between September 2002 and June 2006, far lower than average house prices and hardly more than inflation.
Last year, EG revealed that more than £77m of new-build apartments in Docklands lay unsold in just three towers (25 June 2005, p38).
