New-build flats in London are the most popular when it comes to the number of property sales, but buyers can get more for their money further afield.
New-build specialist Stone Real Estate analysed last year’s property transaction data across London. Its findings confirmed that flats rank highest at 93% for new-build sales; terraced property sales achieved 4%, semi-detached 2%, and 1% of sales come under the detached category.
Stone Real Estate’s latest research has tried to identify where in London you can buy big but still afford to buy a new-build property.
Land plots thin on the ground
Stone Real Estate’s founder and CEO Michael Stone comments: “The flat is the most prominent type of new-build property available in today’s market. Land plots and space are thin on the ground. Price also dictates this trend to a large extent, with many buyers unable to afford a larger property, so the flat enables the delivery of a more affordable option to meet demand.
“However, this popularity goes beyond supply and price point. Many new-build developments are delivering a lifestyle in addition to the bricks and mortar, incorporating features such as onsite amenities, private gyms, cinema rooms and rooftop social areas.”
He adds: “All of these additional benefits resonate with today’s new-build London buyer and this is helping to drive the popularity of these developments.”
Battle of the boroughs
In Barking and Dagenham, Barnet, Bexley, Brent and Bromley, 100% of new-builds sold during 2019 were flats, according to the research. Similarly, in Camden, Croydon, Westminster and the City of London, flats totalled 99% of new-build sales across the boroughs. However, the borough of Wandsworth breaks the pattern with 51% of its new-build sales coming from terraced properties last year – popular with buyers wanting a little more space inside and out.
Tower Hamlets (27%), Richmond (20%), Waltham Forest (20%), Sutton (18%), Redbridge (14%) and Merton (10%) also saw the number of new-build transactions attributed to terraced housing hit 10% or above of all transactions, making them good options to look further afield than a flat.
For semi-detached houses, buyers could look to Waltham Forest, which had a healthy 30% of all new-build sales last year in this category. Southwark (13%) and Sutton (10%) also proved to offer affordable semi-detached new-build availability. Southwark could be heading for the spotlight, as it was London’s top performer in 2019 for having the highest volume of detached new-build sales at 14%.
Lambeth (6%), Newham (5%) and Richmond (4%) also provided a new-build detached offering to a degree, while detached homes accounted for 1% of transactions in Sutton, Redbridge, Hillingdon, Lewisham and Hammersmith and Fulham.
Greater returns from flats
The bottom line is, well the bottom line – space across the city is in short supply, so building up makes sense. Housebuilders and developers are able to build more units and house more people, giving them a better return and greater profit from more homes.
Michael Stone comments: “The beautiful thing about the London property market is the diverse offering of properties on offer.”
“While flats mainly dominate the new-build sector, there are still plenty of pockets where you can secure the quality and value for money of a new-build home, but with a property size and style to suit you.”