London needs to spend £154 billion to meet housing demand
Published by Max Salsbury for 24dash.com in Housing and also in Development
London needs to spend £154 billion over the next 10 years to meet its private housing demand, a new report has revealed.
Knight Frank's 'Bridging the Gap' report highlights that despite the number of new development schemes in the capital being at a record high, there is still set to be a shortfall in the years to come.
Analysis of residential developments in the pipeline has shown that around 33,400 units will be delivered annually over the next 10 years - up from an estimated 28,000 per annum in last year's London Residential Development report.
According to Knight Frank, construction has picked up markedly over the last year in London. In 2013 there were 42% higher applications than in 2012, weighted towards private housing starts in the outer boroughs such as, Tower Hamlets and Barking and Dagenham.
Among other factors, the 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.
Grainne Gilmore, Knight Frank's head of UK residential research, 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.”
As part of Knight Frank’s investigation, eight of the top 10 local authorities, measured by the most rapid forecast growth in population, are in London, with Tower Hamlets leading the way.
The population in the borough is set grow by 22% by 2022, according to most recent population projections from the Office for National Statistics.