At the annual MIPIM property conference in Cannes, France, the Mayor said he wants developers and inverstors to help him double house building, including provision for more affordable homes, and low cost homes for Londoners, and to fund major regeneration projects around the capital.
The Mayoral 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.
He is also 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.
‘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,’ Johnson said.
‘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,’ he added.
He pointed out that since he became Mayor some 70,000 low cost affordable homes to buy or rent have been built 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,’ Johnson said.
Baroness Jo Valentine, chief executive of London First, which represents many of the capital's biggest developers, has welcomed the Mayoral Concordat. ‘Overseas buyers are an important part of the London property market and many purchase off plan, playing a critical role in helping house builder's funds the early stages of development,’ she said.
‘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,’ she added.
But Stewart Baseley, executive chairman of the House Builders Federation, pointed out that overseas buyers are needed or some developments would not get off the ground. ‘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,’ he pointed out.
‘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. We welcome the Mayor's office new initiative that will build on our earlier commitment and ensure the best opportunity for UK buyers,’ he added.
