The number of new homes under construction in central London has fallen for the first time since 2012, according to new research.
An analysis of new units started in the capital shows that in the first six months of 2016 just 3670 new homes were under construction compared with 8750 in the final six months of 2015. This represents a fall of 58%.
In central London, meanwhile, it is estimated the number of homes started during the second quarter of 2016 was 65% lower than the final three months of 2015.
Planning applications for residential developments have also fallen by 17% in the first half of the year. In central London, developers applied for permission to build just 680 units in second quarter of 2016, compared with 3710 homes in the third quarter of 2015.
The researchers say given the uncertainty following the EU referendum, and despite recent indications that the initial economic impact of Brexit might be less harsh than many assumed, developers and housebuilders are unlikely to be heading to new building sites with huge enthusiasm and gusto in the immediate future.
The number of new-build sales across central London during the first half of 2016 was 4650 units, down 12% on the 5270 sales in the second half of 2015.
The number of sales in the second quarter of 2016 alone was also well below the average of 2490 per quarter from the preceding five years.
Overall, however, although new-build prices across central London have fell slightly between April and June values remain 0.7% up on a year ago.
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