Construction starts on London residential developments fell by more than half as the U.K. economy fell into its second recession since 2009 and demand waned, consulting firm Drivers Jonas Deloitte said today.
Thirty-five new projects were started in the U.K. capital in the six months through March, the London-based firm’s biannual Residential Crane Survey showed. That compares with 81 developments commenced a year earlier.
“While it is too early to call this slowdown in new activity a clear trend, it does reflect the unease in the wider London residential market,” Anthony Duggan, head of research, at Drivers Jonas Deloitte, said in a statement.
U.K. homebuilders such as Berkeley Group Holdings Plc (BKG) and Barratt Developments Plc (BDEV) have focused on London and southeast England, where house prices have been the most resilient. The U.K. entered a recession in the first quarter as construction output fell 4.8 percent, the most in three years.
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