Despite a slight decrease in house prices in London over the past few months, one London-based property developer has reported healthy profits, and an expectation that their profits will continue to rise to record levels over the coming months.
Telford Homes, who specialise in building new affordable housing in inner London, have reported expected pre-tax profits of £45m this year, largely due to the lack of existing housing supply in London at affordable levels to the average buyer.
They are currently working on 4,000 properties, 500 of which are for investors buying the properties to rent. They are also awaiting planning permission for a further 900 properties earmarked for the Buy To Let market. The Telford Homes Chief Executive said that he hoped that 50% of the company’s business in the coming years would be in “Build to Rent” homes.
In a week when a Conservative MP questioned his Government’s housing policy during Prime Minister’s Questions, stating that buyers in his constituency were priced out of the housing ladder with the average home there costing 10 times the annual salary, this is a worrying position for one of the leading London property developers to take.
The buck surely stops with the local authorities though, who must do everything they can to ensure that affordable housing continues to be built at a rate matching the demand. While there is nothing wrong with investors capitalising on the London market, it should surely not be at the expense of those needing to find housing or trying to get onto the property ladder for the first time.
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