New Homes Applications Fuel Property Market in London
There has been a sharp rise in the number of planning applications for new homes in London.
Online PR News – 02-May-2013 – A recent survey by CBRE shows that there was an increase of 116 per
cent of units pending planning approval in the first quarter of 2013. There was a total of and 6548 new homes
pending approval in Q1 of 2013 compared to 3023 new homes applications awaiting approval in Q4 of 2012.
There is also an improved strength in the London property market. The numbers of house builders who want
to increase their supply of housing stock in the capital are submitting an increased volume of plans for
approval hoping to develop new developments in London.
The absorption rate for new build homes also reached an all-time high during Q1 in 2013. The number of new
build homes being sold off-plan reached 49 per cent which is an all-time high compared to 48 per cent at the
peak of the property marketing in 2007.
According to the survey average values of residential property increased by 10 per cent on average in prime
borough areas of London and sales volumes for new build homes grew. Sales volumes also grew for the
prime £2M and over property sector.
The average values in the new build market have also increased overall. An average price for a two bedroom
London property has increased from £612 per square foot in Q1 in 2012 to £621 per square foot in the same
period in 2013. The survey also revealed that nearly half of the asking prices of new build homes on the
market have increased.
Fleur Rowan from What House says: "This is encouraging news and demonstrates a renewed vigour in the
London property market. The increase in the number of planning applications for new build homes also
reflects the increase in demand overall for property in London."