More than two-thirds of the capital’s new homes are being snapped up by investors, a Greater London Authority (GLA) study has revealed.
The research, which was carried out by London Development Research, says 45% of new dwellings in developments containing more than 10 homes were purchased by buy-to-let investors.
Another 16% were bought by investors to sell and a further 6% were built by developers to let. Owner-occupiers bought 30%.
The report says that although the high level of buy-to-let investment is pushing up prices for first-time buyers, it is also giving developers a greater incentive to build schemes.
n Responding to the GLA’s draft housing strategy this week, the Home Builders Federation has criticised proposals to force developers to provide more family homes. It said: “If the mayor forces developers to build a product for which there is limited or no demand, it will merely act as a disincentive to invest and develop in London.”
The report, Who Buys New Market Homes in London, can be viewed on www.london.gov.uk