Tory mayor candidate Shaun Bailey has promised to build 100,000 new homes for young londoners, if he is elected next year, Property Secrets reports.
Bailey will be up for election in May 2021 and has outlined plans to build ‘millennial homes’ that are aimed at young Londoners – to buy for £100,000 or a deposit of just £5,000.
The properties will be part of the shared ownership scheme where up to 10 people can buy a share in a newly built home.
The announcement will be made this week in Erith, South East London and he is quoted saying:
“The overwhelming majority of Londoners want to own a home and the mayor of London’s job is to help make that happen.”
“But over the last four years, Sadiq Khan mostly built homes for renting, not buying — locking a generation of Londoners into rented accommodation, unable to save for a deposit.
“So during my first term as Mayor, I’ll fund the construction of 100,000 millennial homes to be sold at £100,000 each.”
“I spent parts of my twenties homeless, wondering whether I’d ever get on the housing ladder,” he will say.
“Shared Ownership was the first step on the housing ladder for me and my priority is to give more young people the same opportunity too.”
Young buyers were given a lifeline earlier this year following the stamp duty cut implemented by the Chancellor Rishi Sunak. Until 31st March 2021, any homes under £500,000 in the UK will not be subject to any stamp duty, giving the average buyer a saving of £10,000 to £15,000 – a move which has seen a huge surge in demand for house purchases and property growth of 5% compared to this time last year.
Any new initiatives will be welcomed by construction firms, estate agents and financiers who rely heavily on property market trends. The promise of new developments will be welcomed by some of the UK’s fast-growing home developers including Griggs, Berkeley Group and Linden Homes.
However, some property experts have warned of the possible hangover for when the stamp duty cuts end in March 2021. Given that mortgages and property purchases are heavily evaluated on income and employment levels, this will create uncertainty and unpredictability when the furlough scheme officially ends and the economy continues to be affected or starts to recover from the impact of covid-19.