Source: City A.M
London is set to drive a surge in UK house building as the industry prepares for the number of new homes being built to hit an 11-year high.
Large-scale developments and private sector rental demand are set to drive the number of new house builds in the capital up by 141 per cent, according to data about new homes registered by UK builders in the three months to September.
This jump will underpin a 15 per cent rise in new homes across the UK, the National House Building Council (NHBC) said, with 43,578 properties set to be built – the largest number since before the financial crisis.
Steve Catt, senior regional director for England at NHBC, said: “The industry has enjoyed a good quarter, with the main growth for England driven by the strong numbers coming through in London and the south east.”
“There was also considerable growth for Yorkshire & Humberside and the south west when comparing registration numbers from the same period last year,” he added.
“Both the private and affordable sectors performed well and the signs are looking good for the final months of the year.”
The news comes as London’s property market has faced a recent slump, after house price growth slumped to a five-year low last month, according to Nationwide data.
Third quarter house prices in London fell 0.7 per cent year on year, while the average UK property price increased by 2.1 per cent.
At the top end of the market, Kensington and Chelsea has seen the biggest UK price fall of 4.9 per cent to an average £1.17m over the past year.
Estate agents have cited stamp duty changes and concerns over Brexit as reasons for the slowdown in demand.