New homes unaffordable for most Londoners

Author: Cyril Richert

Mira Bar-Hilel has published an article in the Evening Standard commenting on a report showing that thousands of new homes are being built in the capital at prices well beyond the reach of most Londoners.

“Construction consultants EC Harris found more than 4,600 homes have been built, approved or planned this year at a value of between £1,250 and £1,650 per sq ft — two to three times higher than the current average price of existing houses in the areas where they are being built.

Overall, more than 20,000 prime homes could be delivered in London over the next decade. The combined sale value could exceed £50billion, with the potential peak of development activity predicted to be in 2017.

[…] Among major high-end developments are the penthouses being built in the second phase of work at the Battersea Power Station site, set to be released for  sale in April 2014. These could sell for  £25 million to £30million, according to Liew Kee Sin, of the Battersea Project Holding Company.

As the bulk of the high-end market involves foreign buyers and investors, currency movements will be “crucial”, EC Harris said, warning developers risk an increasingly crowded market.

Darren Johnson, Green Party Member of the London Assembly, said: “Building 20,000 luxury homes isn’t supplying the sort of homes Londoners need, it’s a waste of scarce land and is driving up prices elsewhere.

“The Mayor needs to use his planning and housing powers to ensure that homes affordable to ordinary residents are the priority.””

On the other hand, Rory Meakin said, on the social blogging system Twitter:

He specifically commented on Mira’s article:

So do we have to build more social/affordable houses for Londoners, or more luxury flats, that will be a little bit less expensive? That is the question…

Filed under: Miscellaneous New homes unaffordable for most Londoners

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