London’s stock of completed but unsold homes has surged by almost half this year as Brexit uncertainty and affordability issues dog the housing market.
The number in the capital jumped to 2,374 units as of September 30, the most on record and up from 1,595 at the end of 2017, according to data compiled by Molior London. The borough with the biggest stockpile is Wandsworth, an area that borders the River Thames, followed by Croydon, an outer borough in the south of the city.
“Some of this excess has built up because it’s the wrong product at the wrong pricing for what people want to, and can afford to buy,” said Tim Craine, founder of the property research firm. “For the rest, it’s a case of bad timing due to the lull in the market that’s come about due to Brexit.”
Britain’s housing market is slowing after a multi-year boom as the UK’s impending divorce from the European Union weighs on sentiment and prices remain out of reach for many potential buyers. It now takes the average Londoner 14.5 times their annual salary to purchase a home, the highest multiple ever, according to Hometrack.
Homebuilders fell on Tuesday, led by Barratt Developments Plc, which dropped 2.2 percent as of 10:59 am in London, while Taylor Wimpey Plc slipped 2 percent. Both were among the 25 worst performers in the benchmark FTSE 100 Index. Crest Nicholson Holdings Plc fell 2.1 percent.