More than half of the new homes sold so far on a development in a city widely recognised to have a housing crisis have gone to foreign buyers, sparking concerns that these will be buy-to-leave investments.
The developers, Weston Homes, marketed the scheme in Cambridge at exhibitions in Hong Kong and Singapore.
Out of 58 sales so far on the site which will eventually have 143 homes, 30 have been to buyers from abroad.
Prices for one-bed apartments start at £340,000, with Cambridge known for both rising house prices and rising rents.
Terry Lucking, who owns the Belvoir franchise in Cambridge, said that rents for young professionals starting their careers were so high in the city that many could not afford an ordinary shared home.
He believes the only affordable solution is to offer “micro” rooms to such tenants.
He warned that rising rents in Cambridge “will lead to a sanitising or cleansing of the very people who want to live here – those on salaries of less than £30,000 a year and who have no transport”.
According to the local paper, some 30% of all new homes in Cambridge are being bought from abroad.
Housing consultant and social housing campaigner Colin Wiles told the Cambridge News: “On its website, the developer claims that these luxury homes ‘offer exquisite living for all lifestyles’. Hardly, when so few people in Cambridge will be able to afford them.
“This luxury scheme is already being marketed in China and there is a real danger that they will be purchased and left empty, as a buy-to-leave investment. This is not how the planning system and the housing market in Cambridge should be allowed to operate.”
City council housing chief Cllr Kevin Price said: “Local people won’t even get a look in when developments like Grand Central are marketed to overseas absentee landlords first, and it also drives up prices.
“Housing has got to get back its core purpose of building homes for people, rather than just being an income generator for a few developers and investors.”
Weston Homes said its policy is to launch schemes in the UK first or simultaneously with an international launch.
Local MP Daniel Zeichner said: “”When so many Cambridge people are looking for homes, it is disgraceful that new developments like this are being sold to overseas investors.”
Comments (1)
I hope when these critics come to sell their properties that they turn down decent cash offers from overseas investors in favour of selling to local buyers at a lower price. These are private developments and can be sold to whoever.
Weston Homes do absolutely loads of community work and are constantly working alongside local authorities and housing associations to help all they can(I don’t work for them, it’s just well documented)….they are a company at the end of the day however, not a charity.