London's Regulations Impact Supply of Luxury Single-Storey Apartments
London's stringent building regulations are driving the scarcity of sprawling single-storey luxury apartments, despite their increasing appeal and potential financial benefits for buyers.
London's stringent building regulations are driving the scarcity of sprawling single-storey luxury apartments, despite their increasing appeal and potential financial benefits for buyers.
Since 2019, developers have encountered mounting difficulties in constructing large lateral flats—homes typically spanning 2,000 square feet or more—in Central London, limiting the availability of such properties. This slowdown coincides with a resurgence in international interest in London's property market, particularly among those seeking luxury units in newly developed buildings, according to experts.
"Luxury lateral flats are now attracting global buyers, alongside local downsizers," noted Tahera Zaman, International Investment Consultant at Victorstone in London. "This marks a shift from a few years ago when the domestic market dominated."
International buyers accounted for 45% of property sales in Central London's most affluent areas in 2023, up from 39% the previous year. This resurgence is attributed primarily to buyers from the European Union and Asia.
Meanwhile, "supersized" lateral flats ranging from 3,000 to 7,000 square feet are exceedingly rare, requiring substantial financial resources to acquire, remarked Zaman. One of the largest lateral flats currently available is a 7,626-square-foot apartment in Belgravia, with an asking price of £43.7 million.
Zaman highlighted the Whiteley scheme in Bayswater, West London, as evidence of the renewed demand for lateral homes. This redevelopment of a 1910s Art Deco department store into 139 spacious apartments and a Sixth Senses hotel and spa has seen significant interest, with 65% of the units sold since its launch last year.
However, the recent resurgence in demand faces obstacles due to relatively recent restrictions on developers within the city's affluent core, resulting in significantly fewer projects featuring luxury lateral homes compared to two decades ago.
Consequently, large lateral homes in affluent areas command super-prime prices exceeding £10 million. One such property is the £30 million town house in Princes Gate, Kensington, spanning 9,967 square feet across seven storeys. Price per square foot varies based on factors such as location and condition, but buyers in prime central London can expect to pay between £2,000 and £5,000 per square foot.
This scarcity is expected to benefit owners of large, modernised apartments, whether in Kensington or elsewhere in Central London. Zaman adds "The ongoing launches of luxury developments may signify the final opportunity to acquire newly-built properties."