A report using data from Savills and property consultancy Dataloft claims that luxury private residential towers can dramatically increase the values of nearby homes.
The research - commissioned by property PR firm Lawrie Cornish - looks at different locations around the world but uses the Southbank in London as a case study.
It claims that when the Strata building opened in 2010, house prices on the Southbank rose 14.1 per cent. In 2015 the completion of other schemes such as One Tower Bridge and South Bank Tower helped increase prices in the area by 8.0 per cent.
The firm also says that in Southwark 80 per cent of sky-rise developments have brought new office space to the area and 67 per cent have brought new retail space - driving up economic activity and indirectly house prices too.
Another development, called One Blackfriars, has provided public art to the value of £300,000 “important in ‘place-making’ in large residential developments” the PR firm insists.
The report also says the Shard in London brings one million visitors to the London Bridge area annually, to take advantage of the viewing platforms in the building.
“Sixty seven per cent of the new towers across the Southbank have provided retail space totalling 133,203 square feet. Prior to their development the area only had a fifth of this amount of retail space” the report suggests.
Southbank developments have also improved the public realm through new road junctions, public squares or by financing public green space.
“The impact on the market is palpable, in London an array of luxury residential towers along the Southbank are bringing high-quality residences to the area and improving local price values” claims Charles Weston Baker, head of international residential at Savills.
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Instead of paying £25 to go up the chard; i suggest going to one of the catering places and paying £3 for a coffee instead - same views.
The Chard?
Mmmm Chard is one of my favourite vegetables :-)
That's part of the problem, though, isn't it? Especially in London. Too many luxury flats popping up, not enough genuinely affordable homes to buy or rent. It's all very well these luxury towers increasing the prices of nearby homes, but that doesn't really solve the issue does it. Khan's got a heck of a job on his hands in the capital, because Boris has left a right mess behind when it comes to housing.
His housing legacy is the proliferation of luxury flats and skyscrapers that are springing up all over the shop. Swish and fancy? Yes. Affordable? No. A blot on the landscape? A matter of opinion.
This started before Boris. He did not do anything to help change things though.
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