Record number of tall buildings completed in London in 2019

London’s built environment is changing. Perhaps the most obvious manifestation of this is in its skyline. 

A record 60 tall buildings, both residential and commercial, were completed in 2019, whilst the pipeline of future tall buildings - at various stages of the planning process – now stands at 525.

Indeed, the 2020 Tall Buildings Survey has confirmed trends seen in past years ­– that tall buildings are now a common form of housing; and density, especially close to transport nodes and in opportunity areas.

With London's population continuing to rise, and the demand for new homes and office space only getting higher, this provides growing evidence that well-designed tall buildings, in the right place, are part of the solution.

Our analysis suggests that, from a residential perspective alone, the tall building pipeline could provide more than 100,000 new homes, meeting a significant portion of London’s housing requirements.

Source: Knight Frank / NLA

There also appears to be an increased willingness from planning authorities to consider height positively, particularly in outer London boroughs where there has been significant growth in the pipeline of tall buildings in recent years.

A range of factors have underpinned this shift, including comparatively lower land values — which can make sites more viable to build (particularly given increased affordable housing requirements) — and estate regeneration programmes in outer boroughs. Increased housing targets from the New London Plan are also likely to have contributed to the growing pipeline, encouraging developers and local authorities to consider higher density schemes.

Source: Knight Frank / NLA

For the purpose of this research, and consistent with previous years’ London Tall Buildings Surveys, tall buildings have been defined as buildings of 20 storeys or above in height, that are at various stages from pre-planning to construction. The data refers to the period from 1st January 2019 until 31st December 2019.

Source: Knight Frank / NLA

It is fair to say the backdrop to the 2019 Tall Buildings Survey was one of uncertainty, largely political in nature, and dwarfed only by the current situation. A lack of clarity surrounding the UK’s future relationship with Europe, as well as the general election, were just two factors which contributed to a slowdown in the land market last year, with fewer sites coming forward and less desire for risk among developers.

Clearly Covid-19 will have its own unique impact the pipeline in 2020. Many projects have been paused and the majority of construction sites have ground to a halt. Brexit uncertainty had already impacted labour and materials supply and this will be exacerbated by the pandemic.

But as Stuart Baillie, Head of Planning at Knight Frank, notes in the report planning policies, land availability and housing need in London are likely to facilitate a return to a stronger tall building pipeline in the medium term.

“In addition, a raft of planning policy developments are expected in 2020. The impending Planning White Paper is likely to focus heavily on housing delivery and, similarly, while the New London Plan is the subject of an arm-wrestle between the Mayor and Secretary of State, neither is likely to suppress the acceptability of tall buildings.”

The significant contribution of PRS to the pipeline is another trend worth monitoring, he adds, particularly as the product matures and provides longer term investment returns compared with the build-to-sell model.

“For the reasons stated, the tall buildings pipeline is likely to contract significantly in 2020. However, continuing need for new housing, a latent requirement for new office floorspace and pent up investment funding is likely to see a strong return once the world is able to move on from Covid-19,” Stuart concludes.

The full report, which includes a more detailed analysis of the pipeline - including construction timelines, use classes and planning obligation payment data - can be downloaded from the NLA website.