A whopping \u00a3154bn is needed over the next ten years to meet private new housing demand in London, according to the estate agent Knight Frank’s new housing supply report.<\/p>\n
The report highlights that despite an increase in development activity in the residential sector, there is still set to be a shortfall in the years to come.<\/p>\n
Examining all residential developments currently in the supply pipeline, Knight Frank has identified that around 33,400 units will be delivered on average each year. This is up from the 28,000 shown in last year’s London Residential Development Report.<\/p>\n
These figures are a reflection of the increased activity in the market, and construction has picked up markedly over the last year in London, with a rise in planning applications seen in 2011 now filtering through to new starts. In 2013 there were 42% more applications than in 2012, mainly in outer boroughs such as Tower Hamlets and Barking and Dagenham.<\/p>\n
Grainne Gilmore, head of UK residential research at Knight Frank said: “The average annual supply of new homes in London since 1980 has been around 16,000 a year. The city needs more than 52,000 homes a year. Activity is rising strongly, but there will still be a shortfall in the years to come.”<\/p>\n
Among other factors, this shortfall is being driven by London’s growing population – with new forecasts indicating that it will hit 9.4 million in 2022. According to the Mayor of London, the capital’s population has risen by around one million over the last 10 years, the fastest rate of growth in the city’s history.<\/p>\n
Eight of the top ten local authorities, measured by the most rapid forecast growth in population, are in London, with Tower Hamlets leading the way. The population in this area of London is set to grow by 22% by 2022, according to the most recent population projections from the Office for National Statistics.<\/p>\n
<\/p>\n