propertytalk Live! - London’s housing supply: Where are the gaps?

propertytalk Live! - London’s housing supply: Where are the gaps?

Housing supply in London is currently a third below the Mayor’s minimum target – which is at the lower end of estimates of future housing demand according to research from Savills.
Other think tanks suggest an even bigger shortfall of up to 50% below target. The shortfall in London is at least 10,000 homes per annum against a backdrop of a rising population.
The forecast for the next 5 years shows that Savills expect a delivery of 66,500 homes which means a short fall of 50,000 homes.
Having reviewed the prospects for development and phasing of 2,250 sites across London with a capacity of 500,000 units for market sale. Of these the firm expect only 600 sites to deliver new homes over the next 5 years.
More than half the supply pipeline is locked in sites of more than 500 market units – these big sites are harder to unlock as they require significant investment against a backdrop of scarce development finance.
Savills ask if investment in transport infrastructure and the growth of the private rented sector are the keys to unlocking further delivery of the bigger sites.
The greatest shortfall is in the lower mainstream market (values up to £450 psf). This sector accounts for just 20% of supply vs more than 60% of London’s households with an income of less of less than £70,000.