The research, by Stirling Ackroyd, spells bad news for aspiring buyers in the capital.
What’s the latest?
London's housing crisis has been put under further strain by a fall in new home planning approvals.
Only 5,740 new-build homes in London were given the green light between July and September - a 29% drop compared with the previous three months and 52% fewer than at the start of 2015, according to Stirling Ackroyd.
The low rate of approvals last summer is equivalent to just 22,950 new-build homes being given consent each year.
And that means the target to deliver 42,000 new homes in the capital each year is 'stretched further out of reach', the agent added.
Why is this happening?
Planning divisions appear to have become more stringent about giving the go-ahead to new housing developments.
There were 8,280 applications made for new homes in London last summer, but only 69% of these were granted – well below the 76% that got through in the previous three months.
But even if all applications had been granted, developers would still only be building around 33,120 new homes a year, significantly below the levels needed to keep pace with demand.
Who does this affect?
The low level of approvals is bad news for potential buyers in the capital, as the shortage of supply will continue to push prices higher.
Andrew Bridges, managing director of Stirling Ackroyd, warned: “A generation of Londoners are facing the prospect of leaving the city in order to achieve homeownership and avoid vicious cycles of high rent.”
Sounds interesting. What’s the background?
There is some hope, as the number of homes granted planning permission actually increased in the south of London.
Southwark led the way, granting approval for 912 new homes between July and September - a whopping 1,558% more than the previous three months.
“A generation of Londoners are facing the prospect of leaving the city in order to achieve homeownership and avoid vicious cycles of high rent.”
It was followed by Croydon with 880 approvals, a 293% rise, and Lambeth, where approvals rose by 196% to 586.
These three boroughs accounted for 41% of all planning permissions granted across London during the summer months.
At the other end of the scale, Barking & Dagenham approved only seven new homes during the period, while Kensington & Chelsea approved just eight.
The southern boroughs of Merton and Southwark had the highest approval rates at 95% and 94% respectively.
By contrast, Havering gave the green light to only 12% of applications.
Top 3 takeaways
- Only 5,740 new homes were granted planning approval in London last summer.
- The number of applications given the go-ahead dropped by 29% compared with the previous three months, and 52% compared with the start of 2015.
- The low rate of approvals is equivalent to just 22,950 new homes being given the green light each year - well below the 42,000 properties needed to be built in the capital annually.
What's your view? Tell us by posting a comment...