Construction boom in central London

Building projects in the capital hit eight year high

Construction is at highest levels seen in eight years in central London’s key business districts. The amount of office space currently under construction is at 14.8m sq ft. This is spread across 120 separate projects.

The figures are heartening given the warnings from industry bosses, in particular banking, about pulling out of the city post-Brexit. New business hubs are to be created in Battersea, White City and Stratford, with 65% of the 2.9m sq ft of space pre-let, including the landmark Apple office due to open in the old Battersea Power Station.

Although the amount of office space currently being built is up 4% on six months ago, pre-Brexit, on the downside, there is a marked decrease of new construction projects starting. The volume has fallen by 42% and completion dates have slipped back by three months on average.

Britain’s ambitous building plans, including the new high speed rail line to the north of England, Hinkley Point nuclear plant and third runway at Heathrow, all hinge on the availability of skilled labour, and if the supply of migrant labour is cut off post-Brexit, it could cause further repercussions for building project completion. According to the National Institute of Economic and Social Research, over half the construction workers in London are migrants.

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