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Prime property, slow sales: why London’s stock of empty high-end flats is piling up
London has a growing stock of completed luxury flats that developers have been unable to sell, as demand from wealthy buyers weakens. Rising construction and borrowing costs, alongside uncertainty over property taxes, are making new high-end projects harder to justify and putting pressure on developers.
In central London’s zone 1, 1,400 completed homes remained unsold at the end of September, three times the 2016 figure, while starts fell 75% over the decade to 1,600 in the past year. Some firms have collapsed: London Richmond entered administration with more than 300 creditors owed £39m, while Ardmore Construction owed more than £29m as of September. Overseas buyers have also been deterred by tax changes, including stamp duty of up to 19% on additional properties.
In short
- Central London has 1,400 completed homes awaiting buyers.
- Construction starts in zone 1 have fallen 75% in a decade.
- Costs and weaker demand are squeezing developers.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The unsold flats and failed firms suggest London’s high-end market is struggling to absorb new homes, with construction and borrowing costs, tax uncertainty and weaker overseas demand making projects riskier. Supporters of restraint could argue that developers should respond to real demand rather than build expensive properties that remain empty, while clearer tax rules and a more viable market would help sustain construction and jobs.
The case against
A large stock of unsold luxury flats does not by itself show that London needs fewer homes: these properties serve a particular market and may not meet the needs of households seeking affordable housing. Critics of higher property taxes or policies that deter overseas buyers could argue that they add costs and uncertainty, discouraging investment and construction, worsening pressure on developers and reducing future housing supply.
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