Thousands of homes suitable for first-time buyers sold to foreign investors

Thu, 15 Jun 2017

Thousands of homes suitable for first-time buyers sold to foreign investors
Almost 13 per cent of London's newly-built homes were bought by foreign buyers between 2014 and 2016, with many looking to use them as buy-to-let investments, according to research for the city's mayor Sadiq Khan.

During those two years, 3,600 of the 28,000 newly-built homes in London were purchased by overseas buyers, often by investors looking to make big profits and hold them in offshore tax havens. Around half of those homes were priced for first-time buyers, ranging from £200,000 to £500,000.

Buyers based in Hong Kong accounted for 28 per cent of all overseas buyers, the highest figure of all countries. This was followed by Singapore (20.1 per cent), Malaysia (7.5 per cent) and China (5.4), with these four countries making up 61 per cent of all overseas buyers.

According to Lloyds Bank, the average house price for first-time buyers in London is £405,000, significantly higher than the UK average of £220,706.

City of Westminster was the most popular area, with 11 per cent of all London properties sold overseas being located here, while Tower Hamlets (9.6 per cent) and Greenwich (9 per cent) were the next most popular.

The findings have led to calls for Sadiq Khan to act on the amount of properties being sold to overseas buyers, prioritising Londoners instead.

Homes for Londoners, a housing board launched by Khan, recommended he take steps "to make more homes available for Londoners before anyone else, with any measures particularly focusing on homes sold for prices that Londoners, especially first-time buyers, are more likely to be able to afford."

Commenting on the research, Khan said: "In this context, it is a significant finding that more than half of the homes bought by foreign owners were below £500,000 - a price range that will include homes for some first-time buyers."

However, the mayor highlighted that "international investment plays a vital role in providing developers with the certainty and finance they need to increase the supply of homes and infrastructure for Londoners."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.




mths

Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company

HomeBuyService.co.uk is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy
FAQ
Sitemap

Get in Touch