Residential development review – 2009 knight frank
Highlights
• London has not proved immune from the crisis in the residential development industry. New build starts have fallen to unprecedented lows, further widening the gap between the number of new homes being constructed in the capital and the number of new households forming. Supply is particularly constrained
in the super-prime sector.
• Demand from City employees will weaken with bonuses in 2009 predicted to be around a third of peak levels – but increasing interest from abroad, triggered by the weak pound, will provide some counterbalance. With prices falling by as much as 40% for new build stock in some secondary locations, gross yields are
reaching double figures and investors are becoming more active.
• In this review, we set out the key issues impacting on the London development sector and Alan Benson, Head of Housing and Homelessness at the Greater London Authority (GLA) expands on the thinking behind the Mayor of London’s new housing strategy.
From – knight frank
