35,000 Luxury New Homes To Be Built In London

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Every single year London seems to beat its previous record for the number of homes that are in construction, and this year is no exception.  
London has announced that there are upwards of 35,000 luxury new home developments are in the pipeline for the coming decade, which is great news for a wide variety of different types of people.  

Not only is this good news for would-be homeowners, but it has many potential advantages that may leave many investors jumping for joy.  
In this article, we will be discussing what is encouraging the unprecedented number of new homes that are being built in London, and why this may just be a welcomed change to people who are looking to purchase a property in London. 

COVID: How it Impacted the Housing Industry 

There are a plethora of reasons for why there has been a drastic increase in the number of luxury homes being built, with the most prominent culprit being the COVID pandemic.  
The COVID pandemic saw multiple lockdowns shut down most industries in the country, with construction being one of the hardest-hit markets out there.  

This is due to the fact that, unlike many other jobs, construction is not able to be done from home. In fact, there are not too many ways to make construction environments COVID-friendly, which led to a massive hold up in the development of new homes.  

This means that two whole years of development, are now being crammed into just one year.  

In addition, with people having so much time during the pandemic, it led to project managers and developers having much more time to plan and strategize about what they would like to do going forward. Furthermore, due to the vast amount of time that developers have had in order to reflect and plan, it has led to a substantial increase in the number of new homes in London that are being built.  

Of course, some of the more obvious reasons for the new builds in London is due to the fact that London's population is continually growing and new homes are always in demand. Because of this, there's high motivation for new homes to be built both because of the financial incentives that come from the high-profit margins in London, as well as the humanitarian reasons of allowing people to find get a home.  

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What Led To so Many New Luxury home developments being built In London? 

 

After the financial crisis in 2011, there were a plethora of negative consequences as a whole.  
The cost to build widespread residential properties were increasing and the potential profits were drastically decreasing. This led to a variety of knock-on effects, one of which being that investors began to steer away from investing in commonplace residential homes, but instead opting for luxury apartments and home developments.  

At the time, this was a much more financially sound decision that brought with it higher earnings potential as well as drastically reduced risk.  

This is due to the fact that people were just not looking to purchase properties during and after the crisis because of the uncertainty that came with it, which is what led to investors struggling to fill their properties with tenants without offering ridiculously low rates.  
All of the points mentioned above as well as a plethora of others led to luxury homes being the go-to properties to investors, which in turn increased the number of luxury properties being developed.  

Of course, things stabilised over the coming years and regular residential houses began to become a good and relatively secure asset for investors, but the plans were still in place and luxury properties were still performing much better than average homes, offering higher returns.  

Who Is This Going to Affect the Most? 

The large influx of luxury homes will certainly be of benefit to a few different categories of people.  
For one, investors will have a much broader and diverse selection of luxury homes to choose from, allowing them to get better properties for less.  
In contrast, the other types of people who will greatly benefit from this are those who are looking to get a home in London. Sure, there's no shortage of flats and complexes in London, but for those who want to get something a little bigger and purchase an actual house, the additional opportunities will be a welcomed addition.  
This is even more applicable now we are coming out on the other end of a pandemic. All the extra time for reflection has led to a surge of people wanting to move homes or upgrade to something bigger. With London being the capital of the UK and having access to some of the best amenities, it's more than likely that London will be the desired moving location for many of those people.  

Conclusion 

 

The mind-boggling number of luxury homes that are set to be built in London is an exciting prospect for would-be homeowners and investors alike.  
Even though the causes behind the drastic increase in luxury homes are seemingly morbid, with that being a pandemic and a financial crisis, the new homes will soon become homes to a vast number of happy families as well as excited investors.  

If you are interested in viewing any of those aforementioned luxury homes in London as well as any other types of properties, feel free to browse our website. We have all of the latest properties available to look at, and for those of you who are looking to buy new homes in London, we have got you covered. 
For any more information or if you have any questions, feel free to contact us.  

    

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