Log in | Register
07/03/2017

Only a fifth of new London properties provided by SMEs – report

Words: Laura Edgar
New homes in London

Small and medium-sized developers (SMDs) account for two in three new-build schemes in London’s pipeline, but these will provide just one in five of the properties, new figures have suggested.

According to research in London’s new homes landscape by estate agent Kinleigh Folkard & Hayward (KFH) there are 1,031 private new-build developments consisting of more than 20 units currently awaiting planning permission, with consent and awaiting construction, or under construction.

It is expected that the schemes will provide 214,875 properties, the equivalent of 17 years of housing delivery in London when looking at the average number of homes completed each year in London over the past five years.

According to KFH, SMDs will provide only 19 per cent of the properties in London’s pipeline.

John East, director of land and new homes at KFH, referred to the government’s housing white paper, stating that it makes it clear that SMDs are “vital” for London to meet its housing need.

“Our analysis proves that more has to be done to support developers at the smaller end of the scale. Making more land available for these developments and accelerating the construction of sites that already have planning permission is a start, but securing consent will remain a challenge where there are local sensitivities.”

Across the London boroughs, the research suggests that there are five that have SMDs providing the majority of units in the local pipeline.

Bromley has the largest proportion of homes being delivered by SMDs with 70.5 per cent, with Camden (66 per cent), Westminster (63.4 per cent), Richmond upon Thames (63.1 per cent) and Kensington and Chelsea (53.8 per cent) also delivering a large proportion of SMD schemes.

Hammersmith and Fulham (7.9 per cent), Barking and Dagenham (5.7 per cent) and Newham (4.3 per cent) have the lowest proportion of units being delivered by SMDs.

East said: “It is clear many boroughs need to do more to include SMDs in their local plans and get behind the developers hoping to build them. Of course, only a unified approach will work; local authorities, central government and developers must work together if London is to get anywhere close to fulfilling its housing requirement.”

The report can be found here (pdf).

* KFH’s said the research analyses all private residential new development schemes in London’s pipeline including schemes awaiting planning permission, schemes with consent but awaiting construction, and schemes under construction.

Image credit | Shutterstock

Tags