About the report
Sentiment and activity in the Central London new development sales market has picked-up since the general election but the market is now price sensitive as a result of the stamp duty reforms last year which have assumed centre stage following mansion tax and election concerns.
The real divide in sentiment is above and below £1.5m. The reforms broadly mean that purchases below £1m attract lower stamp duty than before while anything above this price point incurs an increasingly burdensome tax hit.
The market in Outer Core submarkets and for smaller units in Core submarkets is still highly active as prices are below the £1m price point.
Recent events in China have instilled a little caution into the market for the future but we remain cautiously optimistic about the robust and sustainable nature of the market over the next few years.
CONSTRUCTION ACTIVITY CONTINUES UPWARD
Central London developers have upped their rate of development even further during the first half of 2015.
The total number of units under construction has now risen to 30,700, up 18% from H2 2014 and three times greater than four years ago.
However, surprisingly, there has been a slowdown in the number of units entering the planning system which has led to a slight contraction in the overall construction pipeline. This is most likely due to the pause caused by the general election in May.
The first of our two feature articles looks at the new raft of towers that are set to transform London’s skyline over the next ten years.
We look at the schemes that will shape this change and we speak with Chris Murray, Managing Director at W1 Developments Ltd, who are developing Principal Tower in the City, to gain a greater insight into what a prime London tower needs to be.
The second of our feature articles raises the question as to whether we should be required to provide so many ‘family-sized’ units in London’s Central Activity Zone.
We look at the issue from both the planning and agency perspective.