London house prices will keep soaring as demand will outstrip supply by almost 50% over the next decade, a report out today has warned.
Knight Frank estate agents have found that the recent boom in residential developments across large parts of London will not be able to cater for an influx of people into the capital larger than previously estimated.
New government figures suggest that by 2021, London will see a 40% rise in new households (i.e. those in need of a single property), the equivalent of needing 525,790 new homes. Knight Frank says that the supply pipeline falls well short of this, with only 277,240 new units currently on the books.
This is despite a 63% year-on-year increase in the number of planning permission approvals, the estate agent said.
“The overall trend for development in London shows that demand for housing in the capital will continue to outstrip supply by quite some margin,” said Gráinne Gilmore, Knight Frank’s head of UK residential research.