Forum Topic

Buyer Confidence Drives Surge in Off-Plan Sales In West London

It's a bit disappointing when a lead story on the TW8 website turns out to be an advertorial for a development.But " Buyer Confidence" what's that mean?  Anyone who is happy to pay £285,000 for a small one bed flat on what is still an industrial estate with a flightpath right over them must have more money than sense.How is that good for anyone other than those making a fat profit?It's quite true, the recent quotes from a few MPs that "developers and agents are orchestrating a form of ethnic cleansing of London" is not so sensational.Exactly who is buying these flats? Which despite all the guff are really nothing more than starter homes with whipped cream and a cherry on top.You would have to be earning a seriously good salary to buy here. Certainly not a good average salary.As for the governments help to buy. Well oddly, on the new builds, prices even pre build have risen and completely absorbed the help money, so you end up having to borrow more.If there were ever an industry that needs serious controls and a opening up, this is it.

Anthony Waller ● 4575d16 Comments

There has to be a way. They do it in other countries to prevent exactly this scenario.The policy is always full time citizens and residents first. And that's what it should be here too.That would of course apply to EU citizens, but interestingly, there are quite a few restrictions in EU countries that apply to non native residents.Some you have to be born in the country or your parents have to be born there.Others it is a minimum 5 years as a resident

Raymond Havelock ● 4567d

I agree that the Government should investigate and review the sale to and ownership of residential properties by people and companies not resident in the UK. There may be legal ways of preventing the sale of residential property to non-resident individuals and companies.Maybe it is an issue that should be raised with our local MP, Mary Macleod ?

David Giles ● 4568d

But the problem is not from europeans living here is it?Apart from an overcrowded island, The properties are being marketed and sold to investors in emerging and unstable countries.The only europeans buying up property as investments are cash wealthy Greeks and Cypriots to avoid paying hefty taxes to sort their economies out.That's not right either.Which is why we do have a housing crisis. What is being built is not affordable to native residents and europeans alike. It is not being built for us. These developments around us are being primarily built for overseas investors.Which is why they are being marketed and sold at discounts as pre builds in China, Singapore, Abu Dhabi and even Mumbai.There's no EU laws to prevent this being restricted, even the U.S. has restrictions on owning residential property. You can do it but there are a lot of hoops to jump through.So just what would a Conservative adminstration do to end this form of ethnic cleansing of local generations in this "rotten" borough?

Anthony Waller ● 4573d

Which specifically? My suggestions come from practices in...Europe.Switzerland (not EU) Austria, Sweden,Lichenstein Luxembourg and now France all operate restrictions.Germany, Belgium and France have severe planning restrictions with developers.

Michael Brandt ● 4573d

Raymond,I sympathise but many of the measures you propose would be illegal under EU law.

David Giles ● 4573d

House prices have for the last 3 decades been relative to incomes.But here they are not. It is way, way out of control and the market has been fed.The kind of homes genuinely needed are not being built and London has become a playground for speculators and overseas investors, largely because cities in other stable countries and pressed for space, have tightened up on such practices.If, as Michael suggests ( which I think is a brilliant idea) it would lead to a levelling out of housing costs then that's a good thing. So yes, prices would decrease and come more into the realms of affordability for people who reside and work here and not the playthings of overseas investors and conglomerates. Like banking, energy speculators and finite resources, we cannot any longer allow, even in a capitalist system, to leave these in the hands of people and businesses that cannot be trusted.Modern day land owners and developers are not all that different to the Landed gentry of the past. They are manipulating and dictating and controlling and have far too many eating out of their palms.We have as mentioned elsewhere developers and their backers wanting control of almost all of the Riverside and the rights to access.This will close another option to return modern houseboats to the river which could make a massive difference along 40 miles of defunct riverside moorings.Developers want marinas and private moorings to add to the prestige of their luxury developments.If changes led to a fall in prices then it would no doubt upset a fair few, but probably only those who are using property as a profit machine, it makes little difference if it is your home for you and your family. So I think it's time for some radical but simple changes.Only full time residents in the UK can own residential property in the UK.Properties must be occupied by UK citizens or residentsProperties cannot be let or sub-let for the first 5 years of ownership except in special circumstances and granted by approval.New properties cannot be second homes or purchased by multiple landlords.That should allow space for genuine home seekers.Councils to make full use of their powers to curb luxury developments without a full complement of affordable and reasonably priced homes to match. Not the token palming off that gets shoehorned in here and there.

Raymond Havelock ● 4573d

Very good and long explanation Michael. But it does not anserw my questions. Are the prices all of a sudden going to decrease? Is council going to set some cap? Then the demand will exceed supply and council will need to take responsibility for select who deserve to buy homes for new low capped prices and who doesn't?

Alex Shpinkov ● 4573d

Well said Michael.

Keith Iddon ● 4573d

Define 'affordable' if you would...in terms of pounds sterling.

Keith Iddon ● 4573d

They are good questions but the market is being manipulated and controlled by developers.We as a region and an island with 60 million people plus not have the luxury of an abundance of space.It is going to be, as time passes as precious as water or energy resouces.So should it be controlled by market forces?It's easy to sit back and be smug if you have a home and read in the Daily Express how much your homes value has gone up.But what about your children and if you want to move?  Unless you are able to make the same income in a rural area or another part of the UK, or downsizing you are going to be no better off. The next step up is still going to be increasingly difficult.The bank of Mum and Dad which is funding a great many more affluent young buyers is risking the pensions and assets of parents but that is the only choice for many who are doing well but not earning anything like enough to live in modest properties.It has to be controlled and councils do have powers that can control this more.I would like to see authorities or the state create a state development corporation which is a not for profit developer and buyers are stakeholders. Good quality housing is built and sold with strings attached. No non resident owners, no second home purchases, no sub letting and responsibility standards for upkeep.The minimal profits for freehold sales which are fixed at a percentage of cost price are returned into the system and fund affordable housing for rent by authorities although it should be low volume and encourage home purchase. with council stakeholder partnerships with low income but employed people.The river could house 8 to 16,000 people in purpose built state of the art  affordable houseboats from Hampton to Thamesmead, but developers are busy ensuring they own all the possible access points and the PLA has done little to stop this.No space is far to precious now to allow this vulture like greed of developers to increase. This is one area where excesses of capitalism need to be curbed.There are just 250 housebouts left out of 6000 50 years ago

Michael Brandt ● 4573d

Good questions  Alex. We all know the problem but what is the solution other than the confiscation and nationalisation of all land and property, a policy which was until recently Labour Party policy until Clause 4 was removed by Tony Blair.Councils do have extended planning powers but Hounslow Labour Council's record of ensuring that more affordable homes are bring built in the Borough has been abysmal, to say the least.

David Giles ● 4573d

How do you see the steps to improve the situation Raymond? Should the council force developers to sell properties below market price? To whom such properties fir low price would be sold? Who will control the lst of the lucky cheap-house-buyers and the selling prices for those properties?

Alex Shpinkov ● 4574d

There's a line that has to be drawn between a free market and greed.It's obvious that this is as out of control as the Banking industry.A home is the most important thing for all people. We are now in a situation where hard working people on good incomes cannot afford even the most basic of accomodation.It is simply wrong that huge swathes of developments are being marketed in the far east and china at discounts in advance of being sold here at inflated prices.It is wrong that property developers and agencies are hyping and manipulating the market and exerting too much control over authorities and communities.It is wrong that councils and governments allow too much exclusivity and luxury developments without a balance of proper family housing.The market is being manipulated and it is ruining and dividing communities.What are the tories doing? Feeding off the gravy train just like Labour.Pigs at the trough.

Raymond Havelock ● 4574d

We live in a free Market society and not in a centrally controlled state socialist economy like the former Soviet Union and its satellites in Eastern Europe. Whether we like it or not, the Market sets the prices developers can charge for their properties.West London is seen as a desirable area for people to live in or to invest in. Property prices in Chiswick have been high for many years and they are now rising rapidly in Brentford and Isleworth and other areas of Borough.Yes, we need more affordable housing but we cannot depend on the Market or the Council to provide this.

David Giles ● 4574d

It's a shame the council were not more vociferous in allowing such 'luxury' developments.Seems to sit rather uncomfortably with the handout to landlords to house the homeless.

Raymond Havelock ● 4574d

I wouldn't be surprised if foreign corporations buy many of these flats.

Keith Iddon ● 4575d