With Sadiq Khan now elected as London Mayor, addressing London’s housing issues has been one of the key factors throughout the race for the Mayor’s office. Here we consider what affect Sadiq Khan’s election has on London’s property market.
Mr Khan faces a huge challenge in tackling the lack of supply in the London property market, particularly providing affordable homes for key workers and those with moderate incomes. Whilst the new Mayor’s plans to build more new homes is clearly needed, there is also a pledge to protect green spaces. It remains to be seen then, where the 50,000 new homes London requires each year will be built.
The private rented sector is the other issue that Mr Khan is keen to address, by introducing affordable rental homes along with rental controls. However with many private landlords already reeling from tax and stamp duty changes, he may need to be careful not to completely discourage foreign investment into London property.
With the uncertainty of the Mayoral elections now out of the way, buyers may start to return to the London market over the summer months, leading to higher numbers of transactions. Undoubtedly a level of uncertainty will remain until the results of the Brexit referendum is settled one way or the other.
Tal Orly Cogress’ CEO & Co-Founder: ‘with the mayoral and general elections now behind us we should start to see a greater number of transactions at the higher end of the London market. The incoming mayors fresh approach to housing will hopefully strike the right balance of providing homes that are affordable and ensuring that London real estate remains an attractive investment’