Brits will be offered houses before foreign buyers snap them up under new rules from Sadiq Khan to stop homes lying empty
Mayor of London plans first scheme of its kind to help Londoners at cheaper end of market who are being beaten to the punch by overseas buyers
BRITS will be offered houses before foreign buyers snap them up under new rules from Sadiq Khan to stop new homes lying empty.
The Mayor of London is planning on launching the first scheme of its kind to help Londoners at the cheaper end of the market, who are being beaten to the punch by overseas buyers.
Mr Khan told The Times: “I want to help Londoners by looking at what measures I can offer to make sure they get first dibs on more new homes.”
The plans follows research his office commissioned, which found that despite the assumption foreign buyers only purchase high-end property, more than half of the new homes sold to them were worth between £200,000 and £500,000.
A number of major housing associations have promised him that they will restrict sales of all their new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Mr Khan added: “I was struck by research that half of all property bought by overseas buyers in London were homes under £500,000 — a price range that some first-time buyers may be able to afford.”
Across London 13.2 per cent of new-build homes are sold abroad, rising to 36 per cent in the most expensive parts of the capital.
And the City hall boss said he was worried about these homes lying empty once they are bought.
He added: “With London in the grip of a housing crisis, it can’t be right that so many homes are left empty at a time when thousands of Londoners can’t find an affordable home.”
Mr Khan reportedly hopes to announced the voluntary agreement applying to one and two bedroom properties in the near future.
The newspaper says he has also written to the chancellor Philip Hammond asking to make it easier for first-time buyers to buy new “off-plan” homes.
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But developers argue many property developments would not get funded without many of the units being bought by overseas investors before they were built.
Rob Perrins, chief executive of housebuilder the Berkeley Group, said: “International customers have always been part of the London market.
“They buy early on and this kick-starts developments and helps to pay for the affordable homes and social infrastructure.”