A leading buying agent says changing planning priorities amongst London councils are likely to mean that large lateral apartments will maintain their high values.
The Black Brick agency - in its latest newsletter - says: “[A] factor which should prop up the prices of top end new build apartments in the coming years is increasing scarcity. Local councils, under pressure to build as many new homes as possible, are starting to act against supersized lateral apartments.”
The agency states that Westminster council’s local plan already prevents planning consent being granted for homes that are bigger than 200 square metres.
And it claims Kensington and Chelsea Council is considering a similar ban on larger units.
“This will be a big hit to luxury developers because since 2021 two thirds of £5m-plus new build sales have involved homes of 200sq m or more. And it also means that the stock of large, new homes will dwindle fast” says Black Brick.
“Savills estimates that there are just over 600 £5m-plus units on sale, under construction, or in the pipeline, and it suggests these schemes will be completely sold out within five years.”
The same newsletter reports that the dire state of much of the buy to let market is also spelling the death knell for flipping - buying a property off plan and with a long lead in time, and selling it on at a profit prior to completion.
The agency notes: “Flipping only stacks up when prices are rising, however, and new figures from estate agent Hamptons show that the number of new homes sold prior to completion has hit the lowest level in a decade.
“In London the number of new homes sold off plan, as opposed to after completion, has plummeted from more than 70 per cent in 2016 to just over 40 per cent.”
Hamptons blames the parlous state of buy to let with landlords selling in the face of higher taxes, diminishing yields and the likely effects of the Renters Reform Bill.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.png)
Join the conversation
Jump to latest comment and add your reply
What next?
Banning Rolls Royces because not everyone can afford a mini?
The solution is to hike up Council Tax massively for huge houses, not ban them. It's ridiculous that the huge houses only pay twice what a band D house pays.
Please login to comment