Foreign Buyers Purchasing New Housing Stock
Recent reports in the national newspapers have shown that much of Londonon's new developments are already owned by foreign property companies. These companies have already purchased the sites where tens of thousands of the capitals new homes will be built and are treating these homes as safe deposit boxes, protected by our favourable tax laws and stable political climate. figures obtained by the guardian newspaper show that sites for close to 30,000 homes across London are owned by just 10 investors in Hong Kong, China, Malaysia and Sweden.
More than a quarter of new homes in large developments of 1,000 units being built in the capital are being built by foreign investors. Many of these homes are sold off plan to international buyers without any hope of Londoners getting a foot in. There is also some concern amongst some politicians who are worried that not enough is being dome to build in social housing on these sites
. If we do not build enough homes for Londoners then who will run local services such as the NHS and policing. Who will be working in the restaurants and the whole army of workers that London needs to function? This is a pont that has been constantly raise but still appears to be falling on deaf ears according to many industry experts.
Another concern amongst some of London's councils is that many of these properties that are built are being left empty whilst the housing crisis in London continues. they are being left empty because house prices are continuing to rise and foreign companies are not only taking advantage of this but are contributing to this by withholding these new homes from the market. Meanwhile families on low to middle incomes are being houses in emergency accommodation because there are no homes to live in.
It must be noted that many of these large developments are providing large numbers of social housing as required by law and that without these foreign buyers our economy would suffer. Along with these new sites new schools will be created. Jobs will be created and new infrastructure will be provided so we have to be careful that we do not damage the relationship that we have with these investors. However many people are of the opinion that not enough is being done for ordinary Londoners.