House prices in Tower Hamlets could fall due to the speed of development in the borough and possible fallout from Brexit, according to Propcision.
The property consultancy published data showing Tower Hamlets Council approved more planning applications than any other London borough, which could lead to downwards pressure on prices.
Propcision co-founder Michelle Ricci said this could be exacerbated if the financial industry is hurt by Brexit.
Michelle told City AM : “If house prices continue to weaken across London, data does suggest Tower Hamlets is positioned to be among the more vulnerable areas as residential dwellings have increased dramatically in the area within a short period of time.
“Furthermore, given the correlation between new-build developments and the financial industry in Canary Wharf, if the sector is impacted by Brexit, then it could have an immediate effect on housing prices and rental yields in new-build developments within Tower Hamlets.”
London boroughs on average made a decision on nine major residential planning applications (to build 10 or more dwellings) per year since 2009 but Tower Hamlets have decided on an average of 35, approving 91% of them.
The borough started construction on 8,060 new homes between 2010 and 2016, exceeding all other areas in the capital.
It will soon become the densest borough as a result of the construction boom, having increased its density by nearly 40% between 2001 and 2015.
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