The heat map below shows the average £psf values of schemes currently selling in London:
This is what we say about it in the LOREMA report:
As we have seen there is a very
clear dichotomy between construction starts in the inner and outer boroughs. We
have stated that the main reason is the
different drivers of each market, debt in the outer boroughs, equity in the
If mortgage availability is still limited then we would expect sales
in the outer boroughs to be limited to a certain extent to the less expensive
and in general furthest away (from the centre) boroughs with sales in the inner
boroughs concentrated around the centre.
In between these two areas of
activity we would expect to see a "dead zone" as far as sales are concerned in
areas that are not far out enough to be affordable by owner occupier standards
but not close enough to the centre to be prime. This is a very simplistic
generalisation but Map 5 seems to bear the assumption out.
This is just one of the many maps in the LOREMA report. Want to see the whole lot? Including one map with 3,000 interactive
dots, each one a possible development opportunity, each one with full
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