Sadiq Khan to give British residents ‘first dibs’ on London homes
London mayor plans to restrict foreign ownership as thousands of properties sit empty
Sadiq Khan is planning to block foreign homebuyers from buying properties in London until they have been offered to British residents first.
“I want to help Londoners by looking at what measures I can offer to make sure they get first dibs on more new homes,” the London mayor told The Times.
The proposal, the first of its kind, would see new homes put on the market in three stages. First, they would be offered to Londoners, and then to British residents, before being made available for sale abroad.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The plans for what the newspaper describes as a “first dibs” policy follows research, commissioned by Khan, which found that, despite the assumption foreign buyers only purchase high-end property, “more than half of all new homes sold to overseas buyers were worth between £200,000 and £500,000”.
The research also found that overall, 13.2% of new-build homes across London are sold abroad, rising to 36% in the most expensive parts of the capital.
The same research found just 30% of foreign buyers were buying properties to use for somewhere to live. “A staggering 70% admitted their reason for purchase was investment,” reports the Daily Mail.
Khan told The Times: “With London in the grip of a housing crisis, it can’t be right that so many homes are left empty at a time when thousands of Londoners can’t find an affordable home.”
Developers argue that the biggest property schemes in the city “regularly rely on foreign investors buying homes before construction has even started, as this enables companies to finance later phases of their project”, says the newspaper.
Rob Perrins, chief executive of the Berkeley Group, said: “International customers have always been part of the London market. They buy early on and this kick-starts developments and helps to pay for the affordable homes and social infrastructure.”
But The Bow Group, a right-leaning think tank, backs the idea of restricting overseas investment. In a 2015 report, the group argued that “since demand for housing in a globalised world is essentially infinite, supply-side policies will have only a negligible impact on prices, and restrictions on foreign ownership are the only way to make homes affordable”.
News of the mayor’s plan emerged as it was revealed that not a single affordable home under City Hall’s control was built in ten London boroughs in the current financial year.
Khan’s target for City Hall-funded affordable homes is 90,000 by 2021, with a minimum of 12,500 for the 2017-18 financial year.
But new figures show that work began on just 2,221 affordable homes under City Hall programmes between April and December - “leaving an uphill battle to hit this year’s target”, says the London Evening Standard.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Big Tech critic Brendan Carr is Trump's FCC pick
In the Spotlight The next FCC commissioner wants to end content moderation practices on social media sites
By David Faris Published
-
ATACMS, the long-range American missiles being fired by Ukraine
The Explainer President Joe Biden has authorized their use for the first time in the war
By Justin Klawans, The Week US Published
-
The bacterial consequences of hurricanes
Under the radar Floodwaters are microbial hotbeds
By Devika Rao, The Week US Published
-
Raise your glass at these 7 hotel bars where the vibe is as important as the drinking
The Week Recommends Have a pisco sour in Peru and a Bellini in Rome. Or maybe run into Bruno Mars in Vegas.
By Catherine Garcia, The Week US Published
-
Love design? These hotels are ready to startle your eyes and drop your jaw.
The Week Recommends A treasure trove of curios and resplendent decor await
By Catherine Garcia, The Week US Published
-
How London fell back in love with the brasserie
The Blend From Brasserie Zédel to Café François, we sample the best bistros in town
By Charlie Teasdale Published
-
Why a Michelin star can spell danger for restaurants
In the Spotlight Winning chefs face heightened financial pressures, changing customer demands and professional limitations
By Harriet Marsden, The Week UK Published
-
6 immersive experiences that bend reality
The Week Recommends Take a journey into the fantastic
By Catherine Garcia, The Week US Published
-
Battersea Power Station: trip to the top
The Week Recommends Head high for a bird's-eye view of the award-winning redevelopment of this landmark building – and views over London
By Adrienne Wyper, The Week UK Published
-
6 bustling outdoor markets ripe for exploration
The Week Recommends These lively markets offer shopping with a side of culture
By Catherine Garcia, The Week US Published
-
Banksy's animal art: method to the mystery?
In the Spotlight Elusive artist's daily series in London sparks joy – and widespread speculation about its meaning
By Harriet Marsden, The Week UK Published