The backdrop against which decisions are taken to build is in a continual state of flux.
Social and planning policy, taxation and economic goals play a key part in development
viability; it is little wonder that new home building is notoriously cyclical.
affecting new homes activity at all levels. The
Build Better Build Beautiful Commission report,
published in January 2020, turned a spotlight
on the aesthetic qualities of new homes, with
the aim of producing developments that are in
sympathy with existing local communities.
Demand for new homes
Over the years, various studies have concluded
that most people prefer to buy period properties,
but tastes change and the new homes sector is
becoming increasingly sophisticated in its
BUILDING
LONDON
The backdrop
The current backdrop for new homes activity
includes central government policy to
promote first-time buyers, alongside policies
designed to discourage investors. At a local
level, there is a debate about the sanctity of
the London Green Belt and a drive to increase
build density in outer London.
A focus on new infrastructure, which is known
to enhance land values and sustainability,
is expected to drive future values and is
HELP TO BUY INCREASE
Proportion of new home sales in London supported by Help to Buy
Since its introduction, Help to Buy has assisted 19,850 property purchases,
20% of new home sales in London, rising to 43% in H1 2019.
Union Wharf
understanding of customer needs. In 2019,
75,000 applicants registered interest with Foxtons
and 6,500 of those (9%) registered specifically
with our new homes teams. If those buyers were
looking to make use of the Help to Buy scheme,
the competition was strong. Just 8,258 new
homes, with a value of up to £600,000, sold in
London in the whole of 2019. In 2014, two thirds
of new homes sales were to investors; today it is
less than a quarter and many of those are
parents buying for their children.
dataloft,
MHCLG
2013
10.1%
2014
12.1%
2015
10.7%
2016
12.6%
2017
24.6% 33.0% 43.4%2018 H1 2019
Source:
dataloft,
MHCLG
22 The London Report | Building London