Larger sites (with a capacity of at least 500 market units) account for a very substantial proportion of potential housing supply, namely 58% of total supply pipeline capacity. Many of these are large capital-intensive regeneration sites on the fringe of central London, particularly in eastern boroughs such as Newham, Tower Hamlets, Greenwich and Barking & Dagenham (see Map 1).
Regeneration potential and sales capacity on such sites rely on there being investment in place, including retail and leisure uses and the public realm. The financial viability of such investment is boosted significantly by investment in new infrastructure, particularly new or improved transport routes to centres of employment.
New transport
New Crossrail stations that are close to significant clusters of new housing supply, and where travel times will be enhanced significantly, include Hayes, Ealing, Whitechapel and the Royal Docks.
Phase 2 of the East London line extension will enhance connectivity at Clapham Junction and to the south of Nine Elms. Proposed investments that would open up capacity include the Northern line extension to Nine Elms and a new Crossrail station at Woolwich.
Control of land supply
House builders (notably Barratt and Bellway) control over a quarter of the five-year supply pipeline in the mainstream market, but only 6% of prime. Within the prime markets, 28% of the supply is controlled by property companies, such as Land Securities and Capital & Counties.
Other private developers, including London specialists, account for 45% of the prime market (including Native Land and CIT) and 28% of the mainstream market (including Ballymore and Mount Anvil). Berkeley, classified here as a London specialist, features as a major player in both prime and mainstream markets.
Around one quarter of the supply pipeline in mainstream markets is controlled by organisations whose main business is not development, so there are opportunities for developers to extend their involvement here.
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