Understanding the housebuilding pipeline will identify opportunities to increase London’s housing supply.
At a time when the economic outlook has weakened, solving London’s housing crisis could unlock future growth in the capital. Additional house building projects in themselves will help to create jobs and stimulate growth. Pivotal to achieving this is the 32 London Boroughs and the City of London Corporation working closely alongside all other stakeholders, such as developers, investors and large employers.
Making housing more affordable and available will create an environment where dynamic businesses can attract and retain the people they need, driving faster growth.
Tracking the performance of the housebuilding process is critical to identifying the key areas for improvement, and, as a result, the opportunities to increase supply. Our first of its kind analysis tracks the full housebuilding pipeline from planning applications to completions.
Housing KPI tracker key findings
Drawing on detailed Ordnance Survey data, EGi data and Place Analytics' modelling capabilities, the key findings suggest:
- the rate of attrition – homes given planning permission but not built – is increasing over time, from 28% in 2010 to 36% in 2013
- developments of 100-149 homes are most likely to be built, with 88% either under construction or successfully completed within three years
- on average, it takes over a year (13 months) from planning permission for spades to be in the ground and construction to begin
- after construction begins, it takes an another 20 months to complete development (on average)
- approximately 30% of new homes built in London are ‘affordable’ homes: including social housing, affordable rent, shared rent and shared ownership.
We will continue to analyse and build on the data to track the performance of the pipeline, as well as working with key stakeholders to support them in identifying and addressing the areas that need the greatest improvement, and hold the greatest opportunities
The Housing KPI tracker full spectrum analysis provides invaluable information for developers looking to target the areas with highest approval rate, or identifying the model that provides the best ROI. It will also assist local authorities and the mayor’s office tracking the conversion rate from approval, to construction, to completion (as well as their speed) to ascertain the areas to address to help make the process as efficient and effective as possible.
Creating the type of housing to foster better social integration will help shape a truly vibrant economy in London, one which provides the opportunities that work for everyone, where happier and more productive individuals, communities as well as business thrive.