London house prices: The capital could have 500,000 new homes worth £200bn by 2024
Although the rise of house prices in the capital has slowed for now, the housing crisis remains a major issue – so new data showing London's property market could grow by over £200bn over the next 10 years is encouraging.
Estate agent Stirling Ackroyd says that although 570,000 new homes will be needed to satisfy the increased demand from the estimated 1m people expected to move into the capital over the next 10 years, London has enough space to provide these new houses, without touching the city’s green space.
Here is an interactive map showing where the new homes could be built. Red indicates the most possible new homes per km2 and blue the least:
The top ten boroughs by the number of possible homes per km2 is led by wards in Southwark and Tower Hamlets:
Andrew Bridges, managing director of Stirling Ackroyd, comments:
New homes hotspots are constantly evolving, and it is likely that in time developers will move from the top ten areas identified here to the top twenty – and beyond.
Bigger trends are also clear. London’s heart and soul is gradually shifting eastwards – not as any other location declines but as the entire city grows in the direction of maximum opportunity. The City fringes are generating jobs, and these areas have grown ripe with opportunity for London’s new homes industry.
Of course, not all areas are created equally. SA has calculated that the new homes could add £200bn to the value of London property, but the growth in wealth will not be evenly spread.
This assumes an average price of £350,000 for a property in today’s market and doesn't take into account price increases. The research concludes that London could have a total property value increase of 13 per cent on the £1.51tn total as estimated in mid-2014.
Here is a map showing how the value will be distributed:
Here are the top ten wards by potential added value at current market prices:
Bridges continues:
Those planning new schemes will be able to count both on London’s economic renaissance and its inevitable population growth over the next decade. Every opportunity mapped here is matched by expected demand.
Our model assumes that new developments are in tune with their surroundings – at a similar site density to other homes in the local area.