Buy-to-Let Housing

Meeting: 
MQT on 2007-05-23
Session date: 
May 23, 2007
Reference: 
2007/0972
Question By: 
Murad Qureshi
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

Reports show that seventy per cent of the 20,000 flats built in London last year were bought by buy to let speculators. What assessment have you made on this impact towards social housing?

Answer

Answer for Buy-to-Let Housing

Answer for Buy-to-Let Housing

Answered By: 
The Mayor

The report I published in January, Who buys new market homes in London, found that investors represent 67 per cent of the first purchasers of homes on new housing developments. Some 45 per cent of first purchasers are buy-to-let landlords rather than other types of investors. The report found that private investment leads to more homes being built in London, because it adds confidence to the market, in particular allowing larger housing schemes to go ahead. The impact on the number of social homes is therefore positive, since it provides more planning gain to support the delivery of social housing. I am aware, however, of concerns that have been expressed about reports of anti-social behaviour caused by residents of some buy-to-let homes. As part of my housing strategy I will therefore be investigating, with partners, ways of ensuring better arrangements for management of mixed tenure developments. I will also be looking at ways of encouraging more involvement by institutional investors, such as pension funds, who are more likely to put in place good quality management.