Why are we building flats for foreigners?

BobQ

Channel 4 has just reported that there are flats being built in places like Stratford, London that are being marketed off plan first to moderately rich people living in countries like Malaysia. These flats are being bought by investors as second homes in London or for rental to visitors to London or as BTLs. Locals have no chance to buy them.

Boris was on the programme saying how wonderful the idea is but it does nothing to help Londoners get on the housing ladder.

The programme noted that this would not happen in Australia who require such developments to be advertised for sale to citizens.

BobQ

More detail

http://londonist.com/2013/09/report-highlights-londons-lack-of-affordable-housing.php

Look no social housing!

chucky

BobQ wrote: »

More detail

I'm not sure what your complaint is, that they're selling the properties abroad or that their is no social housing.

Galliard are a private business. It is up to them which country and where they should sell their product to.

Not sure why it's the fault of Boris either.

AndyGuil

It pays for the flats. Better than giving them away.

DTDfanBoy

No local in their right mind would want to buy them so I don't see why it's a problem

ging84

the affordable homes still have to be built, so this private development being sold to wealthy foreign people means somewhere the builder is selling off a slightly smaller development all as affordable housing, subsidised by all these wealthy foreign people, what is the problem?

BobQ

The problem is that local people are not being given the opportunity to buy them at all. The flats are just being marketed in Asia and its just driving up prices.

chucky

BobQ wrote: »

The problem is that local people are not being given the opportunity to buy them at all. The flats are just being marketed in Asia and its just driving up prices.

Are you saying that Honda should not export any cars from the UK and only build enough for people in the UK to buy?

MiserlyMartin

Not sustainable. London will be the biggest casualty when the market crashes and it will lead the way.

Turnbull2000

BobQ wrote: »

The problem is that local people are not being given the opportunity to buy them at all. The flats are just being marketed in Asia and its just driving up prices.

So foreign buyers can pay more. And often in cash too.

Hardly a surprise developers prefer them over domestic homebuyers. There's little point giving local the opportunity. Most of then wouldn't be able to, or wouldn't want to, pay the price the developers can get elsewhere. It's simply the market at work.

And as Boris Johnson correctly pointed out, blocking foreign buyers would potentially cause damage to London house prices i.e. drag them lower.

leveller2911

ging84 wrote: »

the affordable homes still have to be built, so this
private development being sold to wealthy foreign people means somewhere the
builder is selling off a slightly smaller development all as affordable housing,
subsidised by all these wealthy foreign people, what is the problem?

If all of these flats are bought by wealthy people (Foreign of British) there won't be anyone left in London to serve them at Starbucks,Mc D,local garages etc etc etc...

If indeed affordable homes will still be built ,where will they be built?, somewhere with poor travel links and no jobs I would imagine, back of beyond I suspect.

We don't need overpriced flats being built we need affordable homes and Social Housing.When I say "affordable" I don't mean £300k for a 1 bedroom flat I mean a property that people on average earnings can afford.It can be done ,I've been in the building industry for over 25yrs but "profit" is Number 1 for developers and the Conservatives. Bring back Council houses and give people 5yr contracts renewable if they work for a living and behave themselves.

I'm no Socialist but !!!!!! build affordable houses that people can afford to buy or rent.