More than half of the 1,900 ultra-luxury apartments built in London last year failed to sell, raising fears that the capital will be left with dozens of “posh ghost towers”.
The swanky flats, complete with private gyms, swimming pools and cinema rooms, are lying empty as hundreds of thousands of would-be first-time buyers struggle to find an affordable home.
The total number of unsold luxury new-build homes, which are rarely advertised at less than £1m, has now hit a record high of 3,000 units, as the rich overseas investors they were built for turn their backs on the UK due to Brexit uncertainty and the hike in stamp duty on second homes.
It doesn’t matter that these are “luxury” not “affordable.” There are still 3,000 more units and that will lower the price, fractionally of course, of every other property on the market. Because this supply and demand stuff really does work.
Wouldn’t surprise me at all if one or more of the developers, or perhaps developments, goes bust which would be an interesting time for a housing association to pick up some cheap stock, no?