London-based house builders have increased the number of housing starts in outer London boroughs, in anticipation of greater capital growth, according to new research by CB Richard Ellis (CBRE).

The company report that housing starts more than doubled over the second quarter in outer London boroughs, as demand for new homes in London continues to grow. There is also growing evidence that the recent property price boom in Central London will ripple out to other parts of the capital, fuelled partly by a shortage of new build homes, as there has been an increase in overseas nationals looking to buy property in other parts of the city.

A rise in foreign buyers taking advantage of a weak Sterling has helped to push property prices in central London up by 8.3% year-on-year, according to Knight Frank and now CBRE says that across London, the number of proposed residential property developments with planning consent increased by 36% in prime central London and by a 125% in its surrounding boroughs.

The number of stalled sites has reduced by a third and nine schemes that were on hold at CBRE’s last assessment have begun construction. The largest national developers have driven the upswing with the top 10 national house builders increasing their share of starts in the capital from 15% in Q4 2008 to 60% in Q1 2011.