Billions of pounds have been added to the UK economy by the numerous new construction projects being built in central London, according to new research from Big 4 firm Deloitte.
Around £6.2bn was been added to the wider economy in 2013 alone by way of construction activity in 11 boroughs in inner London, the report found.
The ‘Supporting development, enabling growth’ research paper also highlights another £3.3bn generated by so called ‘indirect’ contributions, which come about via the demands on various supply chains.
Even more ‘induced’ gains come from increased household spending that is a direct result of construction and added a further £2.9bn to the pot.
The new research was commissioned and released by the Westminster Property Association and the City Property Association, the members of which between them account for 85% of all construction activity in inner London.
London School of Economics professor, Tony Travers, points out in the report: “Property development is a major activity in London, drawing in investment and producing new architecture.”
“The economic sectors which depend on the strength of construction extend from developers and architects through to crane manufacturers and brick makers,” he explains.
Meanwhile, the president of the City Property Association Rob Samuel said central London was “the economic powerhouse” of not only the capital city, but also the entire UK.
The association believes that there are areas where the “industry, and the mayor, can work together to deliver housing, office and leisure space for the capital to continue to thrive as a global city.”