Shortage of London New Builds Results In 214% Increase!

Shortage of supply leads to massive 214% increase in sales of new builds in London, report shows

Rod Thomas A few days ago we released a limited number of new build apartments in Streatham, central London. With a 15% discount and excellent 6.7% rental yield we know these are at the cutting edge of what is possible to achieve in central London.

We knew it was an excellent deal, and in the last few days two events have occurred that massively increase the value for investors:

Prime London Investment Property

Firstly, we have released our 85% Funding option, which has reduced the cash required to invest from c. £70,000 to c. £20,000! To buy property in a prime London location with an capital investment of around £20,000 is simply outstanding. Learn more about our 85% funding option.

Secondly, the 2010 Knight Frank London Development Review has been released with their insight into the London market. I'll share the highlights with you but the bottom line for investors is that discounts are evaporating in the face of shortage of supply and increased demand!

A 15% discount in central London on new build is most unusual - yet that's what our investors can achieve in Streatham. Review the Streatham investment opportunity here.

Sales Of New Builds Rise A Staggering 214% In Final Quarter of 2009!

Compared with the year before, Knight Frank report that new build sales rose a staggering 214% compared to the year before. The rise in new build sales was far higher than London sales as a whole that showed 68% growth.

Liam Bailey, head of residential research at Knight Frank said that it was due to lack of supply as the number of new homes fell to an all time low. The current supply of stock is down 20% compared to the first quarter of 2009. The number of new homes for sale in the whole of London hit an all time low of 975 in the third quarter of 2009.

For developers, the improvement in pricing has been seen by an evaporation of discounting, said Bailey.

The increase in demand has been driven by a weak pound enticing foreign buyers, Government schemes targeting the new build sector, low interest rates and first time buyers returning to the market.

Investors account for a third of sales and offplan buying has reappeared with some quality schemes oversubscribed, particularly by foreign buyers.

The report also indicates that the Stratford area will show significant price growth due to the proximity of the Olympic Games.

Rod's View

With a massive shortage of new build property in London, discounts evaporating and demand increasing, investors who are lucky enough to reserve one of our apartments in Streatham are likely to see above average returns in coming years. This is a quality development in a popular location and is priced competitively.

Where To Next?

Call our UK Property Hotline to discuss our available London property. Tel 0333 444 0034 or email questions@axiscontact.com

Download the Streatham, London, Decision Pack

Download the Axis Smart Guide To UK Property Investment

Live in Abundance

Rod Sig

Rod Thomas FCA

Posted in UK Property News

3 responses to 'Shortage of London New Builds Results In 214% Increase!'

clerkenwell property

Added 01-Apr-2010 07:57

Still have very good demand for new homes in London property market.214% is very very good jump.

FourEd

Added 17-Jun-2010 10:39

A 214% increase in the sales of new builds in London is a massive increase. The increased demand might be related to inflation rates (London being one to the best regions in the UK for increasing house prices currently) and the Olympics due to be held in 2 years time.

Rod Thomas

Thanks for the comment

student accommodation

Added 18-Oct-2011 12:43

Though the demand for accommodation and property is high in this situation too.