London needs 47,000 new homes every year to meet demand

Boris Johnson recently commented that in order for London to meet the demand for new homes we need to build 47,000 new homes every year. This comes as no surprise to Londoners that are desperate to get on the housing ladder. The Mayor for London also suggested that any new build properties should be offered to Londoners first as opposed to foreign investors. It is not uncommon for new developments to be sold to buyers from another country that will probably never even visit the blocks in question.

The mayor would like to see new developments sold to local people and not treated as “bullion in the sky” by international investors that were buying them for no other reason than to profit from increasing house prices. He also went on to say that he was not in favor of taxing rich international buyers as he did not want to thwart international investment in London as global city.

The Chancellor George Osborne announced in his Autumn Statement that he would be changing the rules on Capital Gains Tax on any property bought and sold by foreign buyers. Any property sold before April 2015 will now be subject to CGT. This has been welcomed by British based buyers as they have had to pay the tax since it’s inception. It has been long argued that the same rules should be applied to foreign buyers as many investors feel that the current system of taxation is unfair.