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Would First Dibs Policy Help Buyers In London?

There is no denying that many people are unhappy with aspects of the London property market. There is a sizable volume of people who cannot afford to buy property in London, and this group of people want prices to fall or more assistance to be provided to them to help them buy a home. There are also people who are concerned about London house prices falling and what this would mean to them.

You'll also find that many people are unhappy about the lack of available housing in London, and there are a range of strands to this issue. There is a shortage of affordable housing in the entire country, but in the capital, this issue is extremely noticeable. There is also the fact that many properties in London lie empty, purchased as an investment as opposed to a place to stay.

The Mayor of London plans to intervene in property market

There will always be people uneasy at the thought of Governments entering the marketplace, but it may be that one issue in the London property market could see intervention from the relevant authorities. This possibility comes about due to Sadiq Khan's plan to prevent foreign investors and buying from purchasing homes in London until British residents have an opportunity to buy the property.

Considering the current political, social and economic climate, there will be many different opinions on this approach. Everyone will have their opinions on this style of intervention, but if it is put into place, it is believed that it will be the first of its kind. The plan would see properties being placed on the market in three stages:

  •    The first stage would see listed properties available to Londoners
  •    The second stage would see listed properties available to British residents
  •    The third and final stage would see properties made available to the global marketplace

It is a bold move but one which could cause issues and concern. Use of the word "Londoner"is likely to spark conversation because what constitutes a Londoner? Would this refer to people currently living in London? If this is the definition, would people who have lived most of their life in London, perhaps being born and bred in the capital, but who now live outside of London, be placed into the second bracket when it comes to buying property?

Hopefully these definitions will be clarified before any plan comes into place, but no matter how the first stage is defined, it is likely that some people will be unhappy.

There has been extensive media coverage of London property market issues

The plans were outlined in an interview the Mayor of London conducted with The Times. The "first dibs" policy is being suggested after findings showed that over half of new homes, priced between £200,000 and £500,000 were sold to buyers from abroad. This stands in contrast with the thought that foreign investors were only buying, or at least most prominent, in the high-end property market in London. A further study which surfaced in the Daily Mail suggests that 70% of foreign buyer respondents said that they purchased the property for investment purposes, with no intention of living in the property.

The London property market is failing many people in 2018, but there will be many people who believe that it is operating fine for their needs. The moves of Sadiq Khan are interesting, and it will be interesting to see how the "first dibs" policy develops. If you want to stay in touch with the latest news and developments in the London property market, rely on Unico Property Group.



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