Many London properties aimed at wealthy buyers amid shortage

HomeA new study has shown that too many properties in the city of London are being developed for wealthy buyers amid a shortage of homes in the British buyers.

The development of properties is aimed at wealthy has contributed to the affordability gap in the housing stock. Experts have said that some businesses might have to move away from London as their workers will no longer be able to find suitable accommodation while overcrowding will force young professionals to live loner with their parents.

According to Savills, more than 50 per cent of housing demand in London comes from households earning less than £50,000 year but the developers are developing properties aimed at prime properties. These high value properties are priced at more than £2 million to buy or £5,000 a month to rent.

"Builders' focus on wealthier, equity rich and credit-worthy buyers since the credit crunch means that a disproportionate amount of stock is being delivered at what we call 'new prime' levels," Savills said.

Political leaders from the opposition have accused the government of allowing developers to build useless homes while ordinary people face shortage.