About the report
Election centre stage
The general election is just around the corner – we ask how this and other influences such as the recent Stamp Duty reforms and the threat of Labour’s Mansion Tax are affecting residential developers and the residential sales market in Central London.
Developers also give their view on how important the outcome of the general election is to their businesses. Interestingly, the vast majority of Central London developers believe that the result of the general election is more important than the London Mayoral election next year.
Buyer demand has picked up during the early months of 2015. The market is still busy below £1m but has quietened between £1.5m and £5m as Stamp Duty changes and the possibility of a Mansion Tax take their toll. However, the underlying demand is still strong and the fundamentals remain the same; an excess of demand over available supply, which continues to support the market.
Construction activity continues to rise. There are now 26,500 units under construction – a 23% increase during the second half of last year and a 41% rise throughout the course of 2014. The majority of units underway are in Outer Core locations where there was a 34% increase in the second half of last year with Core markets seeing a more modest increment of 8%.
The feature article is on the changing face of Registered Providers. Alix Green, from JLL’s Viability Advisory team, pens the article which includes an interview with Bill Flood from newly-formed, “for-profit” RP Grainger Trust.
Our special focus area is East London. We look at the Olympics legacy and at the wealth of development that is transforming this vital engine of London’s future.
East london legacy
London won the right to host the 2012 Olympics in July 2005. As part of the bid various legacy promises were made. Ten years on from the successful bid, we ask what has been achieved and what is still planned.
Boris Johnson is certainly happy with progress. All eight of the Olympic Park venues, such as the stadium and velodrome, have had their long-term futures secured while the East Village already has its first residents.
Plenty of other residential development is also taking place with construction already underway at Chobham Manor, one of five neighbourhoods within the Park. Westfield Stratford City, the shopping centre, is proving a roaring success while the old Press and Broadcast Centres also have tenants secured.