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Barratt Developments, the country's biggest housebuilder by volume, said today it planned to virtually double its activity in the capital in the year ahead, beginning work on new homes worth more £700 million.
The group will open 20 sites in London, up from 11 previously, and build 2600 units, mostly flats.
The new schemes - with a total development value of £710 million - include the St Andrews regeneration scheme in Tower Hamlets and the latest phase of its Maple Quays project in Canada Water.
Overall, Barratt plans to open up to 50 new sites this year - bringing its total to nearly 400 - but London and the south-east accounts for the majority of the activity, chief executive Mark Clare said.
He called a "two-speed" recovery for the market across the country as London defies a shift towards houses from flats seen elsewhere.
"In the north it is more a question of affordability, but in the south it is about under-supply," he said.
Houses are likely to account for almost two-thirds of Barratt's volumes this year, raising average prices and fattening margins.
Clare played down fears of a double-dip recession but the group is cautious over a "challenging" market where mortgage supply is still a key hurdle despite a shortage of homes.
He said: "I don't think there is any evidence that we are going to see a double-dip on the detailed figures which we are seeing."
But he added: "We are delivering less homes as an industry than we have for the last 50 to 70 years."
The group showed signs of turning the corner in annual results with operating profits of £90.1 million for the year to June 30 against £34.2 million a year earlier. Barratt also turned a pre-tax profit of £15.5 million in the second half, stripping out the costs of last year's fundraising.
Barratt shares fell 4% to 100.4p following the figures.
