Developers in London are getting ready to split unsold luxury apartments into more affordable units to attract first-time buyers.
The capital has thousands of empty brand-new flats – according to a story in the Guardian at the start of 2018, there are more than 3,000 units that have been completed but remain unsold.
With even more developments in the pipeline, those trying to shift the unsold apartments are targeting millennials who want to get on the property ladder and can access finance to do so through the Government’s Help to Buy schemes.
They aim to achieve this by dividing bigger apartments, those with three and four bedrooms, into one-bedroom units that are sized appropriately and, crucially, priced affordably for first-time buyers.
A report in Homes and Property quotes a local estate agent referring to the number of developers in London returning to local councils to alter their planning permission, particularly along the South Bank and in popular Shoreditch.
Rory Cramer, of Marsh & Parsons, said: “We have also seen developers offering more facilities so their properties align more closely with the prime market offering.”
In Southwark, Shard Place was originally given planning permission for 148 flats in its 26 storeys, says Homes and Property. Since returning to the council to change the planning permission, the developer will now create 176 flats, including duplex homes and more one-bed apartments.