A London MP has criticised attempts by developers to sell homes in the capital to overseas buyers.
Liberal Democrat MP Simon Hughes is urging the government to introduce new rules forcing developers to sell homes in the capital first. Last year 7,000 new-build properties were sold in London, with more than 5,000 sold to overseas buyers.
The government says it wants to focus on delivering affordable homes, rather than introduce further regulation. Bermondsey and Old Southwark MP Mr Hughes said the housing market is “failing Londoners”.
He said: “I resent the fact that when we have such a housing crisis in London, and so much unmet demand, that so many of our homes are being marketed abroad and sold abroad before Londoners have a chance.”
Yolande Barnes, from Savills Research, which analyses property trends, said property developers are increasingly selling blocks of flats overseas. She said: “Developers are targeting overseas markets because overseas purchasers are willing buy before a scheme is completed. “That’s really important for funding a scheme that might otherwise not be built.”
Comment This news adds to the story of the dysfunctional housing market that we have in the UK. London has some similarity with Cornwall with developers catering to and creating demand for the luxury market, particularly the overseas luxury market. As we have said before just building houses is not the answer it’s also who you build them for!
[We note that in 2010-11 a total of 17800 dwellings were built in London]