- Hits: 701
London, as most people will agree, is a fantastic place to live and work. Of course, there is so much diversity and options in London that it sometimes feels wrong to talk about London as a single entity. There are so many areas and towns that have their own characteristic and charm that discussing London in total misses or overlooks many of the best points of the city. At Oaks Estate Agents, we are extremely proud to serve the community in Streatham and surrounding areas, and we look forward to doing so for many years to come.
No one would try and say that London was perfect though. There are problems with various aspects of London life, and the behaviour of the property market is something that will always start a conversation that has strong views and opinions. There is a lack of affordable housing in London but at the same time, you have people worrying that house prices in some parts of the capital are set to fall or rise at a slower rate. Another issue that many people have is that many properties in London lie empty, purchased for the investment benefits as opposed to being a place where someone will stay and set up home.
Would a first dibs policy work in London property market?
Most people will have an opinion on these matters and your own circumstances, aims and background will influence the way that you think. There will be people who believe that the market should be left to its accord, but it does appear as though the Mayor of London, Sadiq Khan, is proposing to get involved with one aspect of the London property market.
It is believed that the mayor is keen to introduce a “first dibs” policy with respect to property purchases in the capital. If this policy is put into place, a three-stage proposal is likely to be introduced to the market:
- Stage one would see properties being made available to Londoners
- Stage two would see properties being made available to UK residents
- Stage three would see properties being made available to the global market
If you believe that it is wrong that foreign investors can buy property and leave them empty, this is a move that will be popular with you. It is also worth pointing out that studies show that foreign investors are not only buying high-end property, they are purchasing more affordable housing in London too.
Foreign investors pose problems in London property market
In an interview with The Times, the Mayor highlighted the fact that over half of the new properties, placed on the market with a price between £200,000 and £500,000 were being bought by foreign investors. The natural assumption is to think that foreign buyers are investing in the expensive end of the London property market, but it stands to reason that there are investors at the more affordable scale of the London property market.
In a survey carried out by the Daily Mail, whether this is a reliable source or not, there was an indication that 70% of foreign buyers indicated that they had no intention of living in the home they purchased in London. This means that a sizable number of London houses are being bought for the investment aspect, which exacerbates the limited supply of housing.
The first dibs policy is a radical idea by Sadiq Khan, but some people believe that there needs to be radical change to allow more people to buy property in London. If you want to make sure you know the latest news and activities in the London property market, stay in touch with Oaks Estate Agents.
- Hits: 919
In November of 2017, the Bank of England announced that their base rate was increasing from 0.25% to 0.5%.
- Hits: 720
It is only natural that many people will start the New Year with good intentions. If you want to make the most out of 2018, it is likely that you will have a New Year’s Resolution or two to stick to.
- Hits: 703
There is a high level of focus on the London property market. In recent months, there has been talk of a slowdown in the growth of prices in the English capital and there have even been some areas that witnessed a fall in house prices.