About the report
The mood in the Central London development market has brightened during late 2016 and early 2017. However, the market remains subdued relative to the past five years with development activity slowing in response to a more challenging sales market. Despite the recent upturn developers face tricky decisions; whether to begin construction, slow construction, defer launches or offer discounts. The Government and the London Mayor should be worried about how current conditions will impact on housing delivery, including affordable housing through Section 106 agreements.
CENTRAL LONDON DEVELOPMENT
Residential development activity in Central London has slowed dramatically over the past year. The number of new unit starts in Q4 2016 was the lowest quarterly total since Q4 2011 and was a staggering 75% lower than a year earlier.
- New unit starts decline 75% in a year
- Under construction total passes peak in Q4
- Planning applications fall 27% during Q4
- Sales market looking brighter
- Prices tick up in Q4
- Launches and sales decline