London’s mayor is planning to block foreign homebuyers from snapping up properties until they have been offered to British residents first.
Sadiq Khan, the mayor of London, said he wants developers to give local residents the chance to buy properties on new developments before they are marketed oversees.
‘I want to help Londoners by looking at what measures I can offer to make sure they get first dibs on more new homes,’ he told The Times.
New rules: Mayor of London Sadiq Khan wants to block foreigners from snapping up new homes
In demand: A study showed up to 50 per cent of ‘expensive’ new build homes in London’s most exclusive areas are being bought by foreign investors (above, a Taylor Wimpey development in Central London)
His comments come as the share price of Britain’s largest housebuilders plummeted by £500million yesterday.
Barratt Homes, Persimmon and Taylor Wimpey saw their share prices fall as it was revealed the government’s Help to Buy scheme has been used by better-of households rather than easing the housing crisis.
Research commissioned by Mr Khan found that 50 per cent of affordable new homes – priced between £200,000 and £500,000 – were sold to overseas buyers.
Overall 13.2 per cent of new-build homes across London are sold abroad, rising to 53 per cent in the most expensive parts of the capital.
A study carried out by the London School of Economics and York University found 70 per cent of buyers said the homes were solely for investment.
London First research suggested that 58 per cent of properties were bought with the intentions of being let out. Less than a third were for owners to move in and 15 per cent were for second homes.
The most common country of residence for overseas buyers in London was Hong Kong, according to a study carried out by the London School of Economics and York University.
The same research found just 30 per cent of foreign buyers were purchasing properties to use for somewhere to live. A staggering 70 per cent admitted their reason for purchase was investment.
Mr Khan said he was concerned homes were being purchased by foreign investors who didn’t live in them.
The most common country of residence for overseas buyers in London was Hong Kong, according to a study carried out by the London School of Economics and York University