Number of home approvals in London climbs in second quarter of 2016

Number of home approvals in London climbs in second quarter of 2016 [Photo: istock/Starcevic]

The number of applications for home building approved in London grew in the second quarter of the year, in spite of the underlying worries about the future prospects of the property market beneath a cloud of Brexit uncertainty. 

According to newly released data from estate agents Stirling Ackroyd in its London New Homes Monitor, as many as 6,310 new homes were approved throughout the April to July period, with an approval rate sitting at around 76 per cent. This meant that there were 46 per cent more approvals for construction than there were in the first three-month period of 2016.

However, the home building sector still has some way to go if it is to reach the level of construction that was seen last year. In quarter two of 2015, as many as 8,063 homes were approved, almost as high as the overall number of approvals in the same period this year. 

Andrew Bridges, managing director of Stirling Ackroyd, said that although London has had to weather the storm of Brexit in recent times, it is encouraging to see that the market for building homes is remaining positive. 

"There may still be an impact to come but for now, this pick-up is a sign that London’s property market is resilient. It’s a new game of unknowns and London could emerge a winner," he said. 

The highest number of approvals in the second quarter were to be found in Westminster, where a 99 per cent rate of approvals meant there were some 1,720 homes given the green light. However, Mr Bridges said that more needs to be done to ensure that other parts of the city are not falling behind and leaving buyers scrambling for available stock. 

"Westminster is soaring ahead in terms of approvals and applications, but these are unlikely to be affordable for the typical Londoner. Many in the capital are left feeling let down as affordability drives them further away from a home of their own," he concluded.