London mayoral hopeful David Lammy has pledged to build 30,000 new homes for sale to first time buyers which would be allowed to be resold to others starting on the housing ladder
In an interview with The Guardian, Lammy said that the homes would be built on public sector land and sold for as little as £150,000.
Leaseholds on the properties would prevent future sales prices rising in line with house price inflation – capped at 10 per cent above the cost price.
Lammy said: ‘We cannot let the Tories have a political monopoly on talking about home ownership – Labour needs a plan to make buying a home affordable for young people, and that’s what I’m outlining,’ he said.
‘The state needs to play a much greater role, and under my plans that’s what will happen: raising the money, building the homes and regulating to make sure they remain genuinely affordable. It’s a new era of hands-on leadership on housing and it’s what London needs.’
He said that the cap in price rises would be lower than 10 per cent for those who had not been in their house for a significant amount of time.
The construction of the houses would be funded from a £10billion bond issue, he promised.
Lammy, the current MP for Tottenham, is one of six contenders vying to become Labour’s candidate for mayor in next year’s election.