New research has revealed the London boroughs with the biggest share of new-build homes amid a renewed effort to increase housing supply across the capital.
Drawing on the latest housebuilding statistics, property experts SBA Property Management have found that East London is leading the way for new-build developments.
The research shows that Tower Hamlets has the highest share of new builds in the city, with 7.2% of the borough’s housing constructed in the last five years. The inner London borough is followed by its neighbour, Newham, where 5.5% of homes are new builds.
Barking and Dagenham also makes the top five boroughs for new-build property, with 4.1% of homes recently constructed. Collectively, the three East London boroughs account for over a fifth of new-build completions over the last five years.
Other new-build hotspots include the outer London boroughs of Ealing and Croydon, where new builds make up 4.3% and 3.8% of housing stock respectively.
Tim Darwall-Smith, Director at SBA Property Management, said: “London has been the driving force behind the UK’s housebuilding programme in recent years, with regeneration of the city’s historic East End delivering thousands of affordable new homes to local residents.
“The Labour government has pledged up to 400,000 new homes in London over the course of its five-year term, so we can expect construction activity to be scaled even further, with Tower Hamlets and Newham likely to remain critical to this growth.”
For prospective buyers looking to get onto the property ladder, London’s new-build hotspots offer some of the lowest house prices in the city.
The latest house price index data shows that Barking & Dagenham, Croydon, Newham and Tower Hamlets are among the ten cheapest boroughs for property values.
Barking & Dagenham and Croydon offer average property values below £400,000, meaning buyers can secure a new-build home for an initial investment as low as £50,000 with typical deposit costs.
Habib Mogul, Director at SBA Property Management, commented: “There are many benefits to investing in new-build property, especially in London where capital growth has historically been more pronounced than the rest of the UK, though some buyers may be unsure whether now is the right time to take the plunge.”
“A change in government and the new legislation that often follows will always bring a degree of uncertainty for property investors – Labour’s recent Renters’ Rights Bill is a prime example – so it’s more important than ever to lean on the data and consult with professionals to make the most informed purchasing decision.”
