Recent analysis shows that new home building approval rates surged in London by 46% in the lead up to the Brexit vote.
Research from Stirling Ackroyd has found that 6,310 new homes were approved in the second quarter of 2016. This compares with 4,300 new homes approved earlier in the year.
However, year-on-year home approvals fell, with 8,063 new homes approved in the second quarter of 2015, significantly more than the 2016 figures.
Before the vote, major house builders, such as Barratt Homes and Berkeley Group, warned Brexit could result in fewer new homes being built.
Andrew Bridges, managing director of Stirling Ackroyd, comments: “London has had a tough time lately, as Brexit injected a dose of uncertainty into the property market. In spite of this, the number of new home approvals improved in the run up to the result.”
“There may still be an impact to come but for now, this pick-up is a sign that London’s property market is resilient. It’s a new game of unknowns – and London could emerge a winner,” he adds.
Mr Bridges couches his optimism, saying: “There’s a clear and difficult road ahead to solve London’s housing deficit. A big challenge is how to ensure the government’s promise of 1 million new homes and Sadiq Khan’s promises of over 50,000 in London, are delivered now Brexit is a reality.”
The data shows wide variation in the rate of approvals among the London boroughs.
Westminster has the highest approval rate in the capital, approving 99% of all new home applications While Newham was the lowest, approving only nine new homes over the quarter, rejecting 92% of applications.
Outer London was revealed to be a strong performer, with Havering having a 87% approval rate. The average approval rate across London was 76%, with only 13 out of 33 boroughs surpassing this.