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Mayor urges London residential developers to market homes in the capital first

Out-Law News | 12 Mar 2014 | 2:45 pm | 1 min. read

Mayor of London Boris Johnson has called on developers of residential schemes in the capital to sign a deal with him under which new homes would be marketed and sold to Londoners before, or at the same time, as they are made available to overseas buyers.

Johnson has launched a 'mayoral concordat' to promote home ownership for Londoners. It has so far been signed by the Major Developer Group, London First, London Chamber of Commerce and the Home Builders Federation as well as 50 London developers.

The Mayor said in a statement that the commitment under the agreement to market new homes in the UK before or at the same time as they are marketed abroad will help ease the "unprecedented demand" for housing in the capital and help Londoners into home ownership.

Johnson said he did not "in any way" want to deter international investment and said he recognises the important economic contributions such investment makes to London. "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 said.

“Attracting up-front investment by pre-selling homes is absolutely key and without it many developments would not go ahead," said Home Builders Federation executive chairman Stewart Baseley in a statement. "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," Baseley said.