Topics: Property

London Mayor: Sell new homes to Londoners first

Written on Tuesday, 11 March 2014.

The Mayor of London, Boris Johnson was today telling developers at the international property forum at MIPIM in Cannes to join him in a new deal or concordat to market and sell London homes to Londoners first.

Ahead of his keynote speech this afternoon, the Mayor has escalated his call to developers to market their property to Londoners first with the launch of a Mayoral Concordat on new homes in the capital. The Concordat is already supported by the Major Developer Group, London First, London Chamber of Commerce and the Home Builders Federation and signed by 50 big and small developers in London. The Mayor is now urging all developers and international investors to get on board.

The Mayor is writing to key developers across the UK, asking them to sign up to commit to selling new homes on every development to Londoners before, or at the same time as they are available to overseas buyers. This will help ease the unprecedented demand for housing in the capital and help Londoners into home ownership.

In his letter to developers the Mayor of London, Boris Johnson said: “New housing developments are a vital part of the infrastructure of a living and dynamic city. London is a global city and therefore will inevitably have an international element to its market. I do not in any way want to deter international investment – you can see astonishing transformation in London thanks to international investment — and I recognize the important economic contributions migrants make to our city.

“You will understand however, I want Londoners to be able to live near where they work and to raise their families in our boroughs. Doubling house building must be of benefit to everyone in our city who contributes to our economy. With your help, during my time as Mayor we have built 70,000 low cost affordable homes to buy or rent from Barnet to Battersea to Bexley. We have seen the emergence of a purpose built private rented sector. And we are determined to help young Londoners through my First Steps scheme, or to raise their deposit through rent—to-save and Help to Buy mortgages. “I am therefore writing to ask you to sign up to my new Mayoral Concordat to promote home ownership for Londoners. This voluntary pledge recognises your commitment to market new homes first or first equal to Londoners. I hope your company can join other respected developers in giving this commitment. “

Baroness Jo Valentine, chief executive of London First, which represents many of the capital’s biggest developers, welcomed the Mayoral Concordat. She said: “Overseas buyers are an important part of the London property market — many purchase off-plans, playing a critical role in helping house builder’s funds the early stages of development. But there needs to be a level playing field and people in the UK should not be prevented from accessing property that comes onto the market. We also have to recognise that many of our members already give UK buyers the same chance to buy as anyone else, which is why they have so readily put their names to the concordat.”

Speaking today, Stewart Baseley, Executive Chairman of the House Builders Federation, said: “Attracting up-front investment by pre-selling homes is absolutely key, and without it many developments would not go ahead. Selling some properties abroad allows tens of thousands of affordable homes as well as for rent and to buy, to be built for Londoners. London has an acute housing crisis and foreign buyers are playing a vital part in helping increase the number of homes being built in the capital. However, the industry wants to ensure that UK buyers have every possible opportunity to buy the homes being built and signed a commitment last year to market in the UK at least at the same time as abroad.

Update 14.03.2014

Following the Mayor’s speech, Mark Reynolds, Chief Executive at Mace, said “I’m pleased to have already signed up to the Mayoral Concordat and I support the Mayor’s pledge to market new homes to Londoners. This is a commitment Mace has already put into practice at our development at Greenwich Square, which will provide 645 new homes for London. We have already seen a strong uptake with all sales from the local community.”

Read more here: Mayor tells developers at MIPIM ‘Sign new deal to sell homes to Londoners first’

See also: Buildington’s London property development database

Please note that all property prices in this article are subject to change. You should always contact the sales representative for the up to date information.

While every effort has been made to ensure the accuracy of the information presented on this page is up to date and correct, Buildington accepts no responsibility for any errors contained in the information, or if the information is not current.