The third quarter of 2017 has seen sales volumes close to record levels. In fact there have only been three better quarters since 2009. This (apparent) success is more than matched by confidence on the construction front - there were many more starts than sales during Q3 2017.
However, remove Build to Rent and Help to Buy and there is no sense of euphoria amongst those charged with selling apartments within the remaining schemes. This is true in both Inner and Outer London.
During the first three quarters of 2017:
- 18,000 units sold in London, more than 6,000 of these during Q3 2017.
- 21,000 units started construction.
- 16,500 units completed construction.
At the end of September 2017:
- 64,000 units are under construction, which is 8% up on December 2016.
- 28,000 of these units are unsold, which is 15% up on December 2016.
- There are also 1,100 compete but unsold ‘stock’ units.
So, the record number of units under construction is matched by a record number of unsold units. 46%, of unsold units are priced in the £1,000 - £1,499 psf band, but the numbers are rising faster in other brackets – since 2015 the number of unsold units priced above £1,500 psf has risen by 48%.
