A number of residential developers in London have announced a new voluntary commitment to ensure buyers in the UK have every chance of acquiring new-build homes in the capital.
In recent years, many London-based developers have focused their efforts on selling new-build homes to foreigners, most notably in Asia. There, some investors are prepared to buy off-plan units, sometimes in bulk and particularly at the upper end of the market, helping to fund housing projects in the process.
But now the Home Builders Federations (HBF) says that housebuilders who have signed up to the agreement are committed to selling to British buyers as well as international investors.
"Attracting up-front investment by pre-selling homes is absolutely key, and without it many developments would not go ahead. Selling some properties abroad allows tens of thousands of affordable homes as well as for rent and to buy, to be built for Londoners," said Stewart Baseley, executive chairman of the HBF.
He added: "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."
The Mayor of London, Boris Johnson, has welcomed the HBF's efforts to ensure that homes are not exclusively marketed abroad before the UK. He commented: "I welcome the Home Builders Federation efforts to get developers to sign a code of practice to ensure domestic buyers are not disadvantaged and repeat my call to mortgage lenders to extend offer lengths to nine months.
"It is right that new homes are made available to Londoners at the outset. In addition it is critical we continue to make every effort to boost housebuilding and deliver more homes to support economic growth, including low-cost homes to rent and buy for hardworking Londoners."