Housing squeeze in London as density soars

The density of major new schemes in London has increased fourfold in the last three years according to a new report issued by property consultants CB Richard Ellis and Hamptons Internaional.

The report found that the average density for large developments had risen from 290 habitable rooms per hectare (hrh) to 1,054 hrh in 2006. This equates to a 60% rise each year which the report described as dramatic.

The report reviewed 38 schemes with at least 300 units across London and found that 13% had a density above the maximum recommended density for a scheme, 1,100, laid out by the Greater London Authority. Three of the five most dense schemes are in the Thames Gateway. The report said: "This is a significant change, and one which demonstrates the considerable shift of planning policy twoards sustainable regeneration of urban areas, as well as the market demand for urban living."

The CBRE report was backed by a new study by residential development finance firm Wolsey Securities that found the average plot size of dwellings had dropped from 988 square feet to 973 square feet in the last year.