Building targets might not be met as developers favour “buoyant” markets


London is falling out of favour with developers and builders as they seek better performing markets elsewhere, and the capital’s annual housebuilding target could be set to fall off track.

Theresa May wants the UK to be building 300,000 homes a year until the mid-2020s in order to ease pressure on the country’s housing market, and 66,000 of these are expected to be built in London.
[crb_image link=”” image=”” align=”left”]
However, Rob Perrins, boss of major developer Berkeley Homes, has warned that London Mayor Sadiq Khan is unlikely to meet his target unless things begin to change, as the number of new developments being started in the capital is currently 30% lower than what it was two years ago.

Perrins believes that a lack of available workforce is part of the problem, claiming the capital needs another 150,000 employees in the industry to have any hope of meeting the targets, while the slow planning system as well as weaker demand due to factors like high stamp duty rates are all leading developers to move away from London towards more favourable areas.

Shrinking workforce from the EU

According to the Berkeley leader, Brexit is also creating major issues in terms of workers. “It is a fact that over half of London’s site labour comes from the EU,” Perrins said.

“This needs to be addressed by a combination of continued access to EU labour, skills training and innovation in construction if the industry is to achieve its medium-term production aspirations.”

He also added that, despite the difficulties, the company remains committed to London. “It’s good for us in one way but bad for London in another way that a lot of the other developers and a lot of the smaller developers are not working in London any more.”

Elsewhere in the country, housing markets are by far outperforming the capital, and this is where many developers are now refocusing some of their efforts. In the north, the likes of Manchester and Leeds are seeing a rise in the number of new developments, while Birmingham and parts of the West Midlands have also been on the up compared to London and the south-east.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

London construction building

Building targets might not be met as developers favour “buoyant” markets


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.