"London’s housebuilders are more than willing to deliver the homes this city so desperately needs, but they continue to face obstacle after obstacle"
- Marc von Grundherr - Benham and Reeves
New analysis from London estate agent Benham and Reeves shows that lengthy development timelines are restricting the capital’s housebuilders from delivering enough new homes, with new-builds making up only 7.5% of all properties listed for sale across the city.
The figures highlight that it now takes an average of 25.7 months for a project to move from a planning application to the start of construction. This is two months longer than a year ago and the longest average timeframe recorded in over ten years.
Delays are not confined to planning approvals. Even once permission has been granted, it currently takes an average of 16.3 months before construction work begins on site. That represents an increase of 3.9 months in just twelve months, again the longest timeframe seen in a decade.
According to Benham and Reeves, this drawn-out process is placing further strain on housing availability. While new-builds account for 7.5% of London’s total for-sale stock, borough-level analysis shows wide variation.
Newham (12.9%), Hackney (12.8%), and the City of London (12.4%) each record more than one in ten properties for sale as new homes.
Richmond upon Thames has one of the lowest levels, with just 2.4% of listings made up of new-builds.
Kingston upon Thames (2.7%), Redbridge (2.9%), and Havering (3.2%) also have notably limited availability.
“London’s housebuilders are more than willing to deliver the homes this city so desperately needs, but they continue to face obstacle after obstacle,” said Marc von Grundherr, director of Benham and Reeves. “From the red tape of planning delays to the ballooning cost of labour and materials, as well as higher borrowing costs and subdued buyer appetite, the challenges are substantial."
“The end result is that new homes account for less than 8% of total listings, with some boroughs seeing barely 2% to 3% of their available stock built within the last few years. This is nowhere near the level of delivery required in a city of London’s size and demand.
“The good news is that 2025 already looks to be a year of greater momentum. As market confidence improves and more developers are encouraged to bring schemes forward, we should begin to see a healthier pace of delivery and a growing share of new-build homes hitting the market.”
