John East Director, KFH Land and New Homes, considers the increase in new home developments.
This autumn, we are experiencing a continuation of a trend we highlighted in our latest Land and New Homes report, Building a New Future. Findings showed that there are increased signs of renewed activity across London’s development pipeline this year, with new schemes of 20 or more new homes up by 18% at the start of 2019, when compared to 2017.
We’ve also seen an increase in new home developments coming to the market across the capital, notably in South London. This is no surprise, as across South West London alone, one in every ten properties sold over the past year was a new build home, predominantly apartments. Developers also recognise that, despite the current political climate, many home buyers want to move forward with a purchase and have both desire and good reason to find their new home.
Another popular trend in the market is that developers are now preferring to offer buyers the opportunity to view the finished product rather than an off-plan concept. By doing so, developers have been able to provide buyers with the ability to see the quality of the new build first hand and appreciate the differences that some plots may have over others. This enables buyers to make informed decisions on which new home suits their requirements best.
Developments launched recently include two sets of nine apartments in Earlsfield and Tooting. Demand is high in these areas, as both have achieved 50% sales success within a couple of weeks of coming to the market. An element of this success is attributed to showing buyers a more finished building as well as providing Help to Buy, which is a popular option for first time buyers looking to get on the property ladder. Based on sales in 2018, across South East London, four in every five properties new build properties sold were below the required £600,000 threshold.
London is set for a decade of building and change if the Mayor’s ambition for delivery of new homes is to be achieved. As the provision of tall towers is increasingly dominating developments in certain locations across London, the skyline is expected to look quite different a decade from now.