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Approval of new London homes drops by 64% ahead of mayoral election

The number of new homes that were approved in the capital in the first quarter of this year has saw a marked decline ahead of next week’s mayoral election.

Figures released today by London estate agents Stirling Ackroyd have shown that the number of new homes given the go ahead in Q1 fell by 64% in comparison to the same time last year.

Just 4,320 new homes were approved across Greater London by the end of March, falling far short of the 11,870 that were approved in Q1 2015.

Were the totals to be repeated throughout the year, it would translate to just 17,290 new homes in the capital falling far short of the 50,000 required to meet London’s spiralling housing needs.

Andrew Bridges, Managing Director at the estate agents, believes the figures hint at a growing crisis in the city’s housing market and commented: “London is selling itself short – the proportion of approvals across the capital is far too low. For developers and prospective homeowners and builders, there’s mixed messages about planning leniency.

“Many promises have been made to overhaul planning within London and put an end to unnecessary delays, but little has actually been done. It’s a difficult task, but what the capital needs is a coherent and measured plan, which every council can follow, and one which prioritises every opportunity for new homes.

“A housing shortfall has been a prolonged problem in London, but as population levels keep on growing it’s getting increasingly serious. And so far, no one, and certainly no mayoral hopefuls, are really waking up to this fact.”

Volatile planning patchwork

The figures also highlight the disparity between the different boroughs of London and the rate of new homes being built.

Of all the Greater London boroughs, Westminster approved the highest number of new homes at 626, followed by Enfield (520) and Barking (379).

Southwark in South London also fared well, with 319 new homes approved, but where the borough most impressed was in the proportion of new homes that were approved, with 97% of proposals given the nod, the highest in all of London.

Other areas were not quite so lenient, with Richmond-on-Thames approving a meagre 11 homes in the first three months of this year, with the likes of Greenwich (22), Harrow (35) and Havering (37) barely faring much better.

Andrew added: “London’s planning patchwork can be volatile. Westminster is the unexpected hero of 2016 so far – and is soaring ahead in approving the highest number of new homes. Westminster’s centrality is an instant draw for developers but many have been off-put by the borough’s reputation for its uncompromising planning policy. In a sense, Westminster is a success. But an alternative view is that it’s the best borough of a bad bunch.

“Next week London will go to the polls to choose a candidate for the next four years. Hopefully, regardless of party political lines, the winning candidate will be able to shift the dial much more significantly – and prepare London’s housing landscape for the 2020s.”