Capital slips to second place, whilst house prices fall
A study of the most expensive cities in which to build has seen London knocked off top spot.
The report, by cost consultant Arcadis, saw London slip to second behind Geneva in Switzerland, with New York third, San Francisco fourth and Munich fifth.
Meanwhile, property prices in central London fell almost 5% in the 12 months to March; the largest annual fall in three and a half years.
Prices have fallen from £1,326 per square foot in March 2022 to £1,261 in March this year, according to data provider LonRes.
The central London market experienced a strong period of growth between mid-2021 and Autumn 2022; but the mini-budget announced by Liz Truss triggered a nationwide fall in house prices.
Housebuilding starts fall sharply in first quarter
A report from data firm Glenigan has revealed that private and social housing starts plummeted 39% and 41% respectively in the three months to March when compared to the previous quarter.
The fall increases to 50% and 52% respectively across the year.
However, Glenigan also found that detailed planning approvals increased 41% against the preceding quarter, and 29% on last year.
Meanwhile, cost consultant Gardiner & Theobald are forecasting “weaker activity in 2024”, as they downgrade their tender price inflation forecast from 2.5% to 2.25%.
Tender price inflation for 2023 remains unchanged at 2.75%, as forward pipelines remain resilient in a market still busy from the effects of a strong 2022.
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