The shortage of housing had reached its peak last summer and still continue to rise. Despite successive Government’s promises to build more houses and existing schemes like ‘Help to Buy’ and staggered removal of tax relief on the interest of loan for Buy- to-Let properties, the situation had very little effect. The predicament is worst in London where the rich, including foreigners purchase the properties for investment to earn lucrative profit. In addition Buy –to -let has created booming uncontrollable prices and shortage of properties. Consequently, first time buyers are precluded to get on property ladder, even the professionals, paying higher rate of tax are finding it difficult to pursue the purchase.
A prestigious newspaper reported recently, that villages and towns across Britain are preparing to follow St Ives in Cornwall, by banning the sale of new houses as second home. Residents of the village voted by a majority of four to one to require all new housing to be sold as the buyers ‘ principal residence under the legally binding covenant. Though there is some opposition, Councils in the Lake District, Derbyshire, Dales, North Devon and Isle of Wight are looking at a similar scheme.
Housing was the main issue for the London’s mayoral election, hence, our new Mayor Mr. Sadiq Khan and Capital's local councils should explore this scheme and every avenue to ease the problem.
Ila Kapadia
By email
