Boris Johnson wants new London homes sold to Londoners

The Mayor of London Boris Johnson has told developers at an international property forum that properties built in London must be sold to Londoners. He made the announcement at at the MIPM in Cannes in what is seen a an attempt to ease the housing crisis in London.

His push for homes for Londoners will be welcomed as people across the capital desperately seek accommodation at a reasonable cost. In a keynote speech the Mayor announced details of a concordat which has been backed by over 50 big and small developers keen to get on board and help with the construction of new homes in the capital. He is trying to get developers across Britain to sign up to a deal that will give Londoners the opportunity to buy homes at the same price that they would have been sold to overseas buyers for.

The acute housing problem has been caused by the increase in population and London has no where near enough homes to accommodate everybody. This is having the effect of pushing up house prices and rental prices to levels not seen before. The Mayors office is of the opinion that homes in London should be sold to Londoners and not to international property speculators.

It is not unheard of agents acting for developers chartering a plane and flying to Hong Kong and selling a block of 100 flats before a brick has even been laid in the ground. None of these buyers will ever set foot inside these flats and this is a major cause of the shortage of homes for Londoners. In his speech the Mayor acknowledged that foreign investment was an essential part of the London property market.

The trend of buying off plan is welcome from a developers point of view as it fees up cash for their next development. However their is a imbalance as nearly all of these new developments are sold to overseas buyers and this can no longer be overlooked.

The Concordat that has been issued by the Mayors office can’t force developers to sell to Londoners. Ir is a voluntary pledge by the developers to offer new homes to Londoners on the same terms that foreign buyers are being offered. His speech also went on to say that Londoners are being locked out of these new homes because these properties are sold at overseas property exhibitions.

The Mayor has said that Londoners should at least be given the opportunity to buy these new homes at the same time as foreign buyers. This creates more of a level paying field and may help ease the acute housing crisis in London.

UK buyers should be given every opportunity to buy these new homes and not be forced to pay the exorbitant rents that landlords are getting away with. His speech will be welcomed by many but there will be others who believe that homes in London are just too expensive and that more affordable homes need to be built not just to buy but to rent as well.