David Lammy, one of six contenders for the Labour nomination for next year’s Mayor of London election, says he wants to offer price-capped homes exclusively for first time buyers in the capital.
In an interview in The Guardian, Lammy says he would sell the first homes at cost-price, using money from a £10 billion London housing bonds issue.
Lammy claims his plan would create a new type of tenure in the UK housing market and see the state showing “hands-on leadership” in housing.
He says he believes the homes could be sold for £150,000 each, having been built on public land and sold with conditions on the leasehold intended to stop high price rises.
Buyers would be able to sell for up to 10 per cent above cost price, but only if they had lived in the home for a substantial period. The newspaper quotes Lammy as saying those trying to sell after a shorter period would get “significantly lower than 10 per cent” appreciation.
The leasehold conditions would also prevent the home being sold to someone who already owned a property.
Lammy has already claimed the bonds would also be used to build up to 30,000 social housing units.