Fewer London property projects will be sold overseas ahead of sales in the U.K. after a number of top U.K. developers signed a pledge to ensure local buyers will have the opportunity to invest at an early stage in new projects.
The move came into effect on January 1 and is spearheaded by the House Builders Federation. Developers including Barratt Developments, Galliard, Lend Lease, Taylor Wimpey and Crest Nicholson, have signed a pledge to market their new developments in the U.K. “… before, or at least at the same time, as overseas.”
The organisation is keen to stress the importance of pre-selling London developments to overseas buyers, but as the U.K. prime property market returns to strength there have been calls for local buyers to be given an equal choice of prime developments.
The full wording of the pledge signed by the developers says:
“We (the undersigned) commit to offer homes for sale in the U.K. before, or at the same time as they are available for sale overseas. The industry is committed to delivering the homes the country needs, and will ensure that equal opportunity is given to U.K. buyers to purchase the homes we build.
“New homes on every development by the undersigned companies will be available for sale domestically before, or at the same time as they are available elsewhere.”
U.K. Housing Minister, Kris Hopkins, said: “The London housing market has received valuable support from foreign investment, unlocking development and leading to the building of homes that wouldn’t otherwise happen.
“But it’s clearly in the interests of developers to ensure that their properties are available to both U.K. buyers and those abroad, so I welcome actions by the Home Builders Federation.”
Singapore has seen, and is still seeing, ‘world launches’ of London property developments, however many Singaporean buyers and investors will now be battling for the best units with investors from the U.K. and elsewhere.
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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