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Homes which are two years away from being built and technically do not have planning permission are being sold off-plan to Hong Kong investors, the Tribune can reveal.

Proposals to build more than 250 homes, offices and retail units on a site occupied by underused office blocks on an industrial estate in Caledonian Road were approved by planning chiefs last month.

Developers London Square are yet to sign a Section 106 agreement, through which a company provides a contribution, for example, to affordable housing to offset negative impacts caused by a development, but they have already started selling flats in Hong Kong.

Speaking to the Tribune this week, Caledonian ward councillor Paul Convery described the decision by estate agent Knight Frank’s to start selling the flats as “premature”.

“It’s a technicality, but it’s a bit premature to flog off these flats off-plan in Hong Kong,” he said. “They’ve not put a spade in the ground. Surely there’s a risk for these investors and they’re not being told about it.”

Cllr Convery also questioned how many of the new properties – which do not yet exist but are on the market at £495,000 for a one-bedroom flat – will benefit Londoners lucky enough to afford them by the time they are built.

He added: “It’s a bit of a stab in the back for people who live here and want to buy their first flat. Even people with a good job and help from the bank of mum and dad may be priced out.”

Buyers for the flats – heavily targeted at the Chinese student market – will have to pay a non-refundable reservation deposit of £2,500 which is payable upon exchange of contracts, and a 10 per cent deposit within 21 days. A further 10 per cent must be paid within 12 months from exchange of contract.

Cllr Convery added: “It’s a tried and tested business model but it’s a bit unethical. You wonder if anything will be available [when the development is completed]. Investors, many using company vehicles, will pay no capital gains tax when they flip the property and sell it at a bloated price in two years.”

London Square did not respond specifically to Cllr Convery’s concerns, but a spokeswoman said: “The Caledonian Road development will include 40 per cent affordable housing, which means 102 affordable homes in total, with 82 homes for social rent.

“We sold the affordable homes to housing provider Family Mosaic on 19 January and they will be responsible for these from now on.

“The first phase of sales to private buyers was launched with an exhibition in London on 17 February and we are following up on interest from potential purchasers. We also held an exhibition in Asia last week.

“The full sales launch, with a marketing suite and show apartment, will take place on site in spring 2017.”