Politicians are taking a stand over pre-selling property to foreign investors. A new industry code will put home-grown buyers back at the top of the developers’ lists.

Londoners are being offered first bite of the cherry with a fresh crop of new home projects, as developers step back from initially launching schemes abroad to foreign buyers who are keen to invest in the capital.

“Pre-selling” to foreign buyers has become a hot issue, with Lib-Dem MP Simon Hughes leading a campaign to stop the practice. He argues that the trend pushes up prices, prevents Londoners buying homes, and creates “ghost” developments with empty apartments owned by absentee landlords buying for investment.

Savills estimates that 75 per cent of private new homes in central London were snapped up by foreign buyers in 2012/13. From April next year, foreign owners will have to pay capital gains tax on any profits, but this is unlikely to dent demand from international buyers, as London property remains such a good investment bet.

Fearing tighter controls on foreign investors after the next general election, developers are going on a charm offensive with London buyers and have signed up to an industry code pledging to market all new homes in the UK before, or at least at the same time, as going overseas. Mayor of London Boris Johnson has welcomed the move.

“While overseas investment is a necessary part of any global city’s housing market, it is right that Londoners are not disadvantaged and new homes are made available to them at the outset,” he says. Barratt, Crest Nicholson, Galliard, Fairview, Redrow, Taylor Wimpey, Telford and Lend Lease are the big-name developers who have signed up to the code.

Smaller builders and niche developers are also focusing on London buyers — and why wouldn’t they, says Carl Schmid of east London estate agent Fyfe Mcdade. “The market is red hot with domestic buyers and likely to remain that way for at least the rest of this year.”

In today’s cost-conscious climate, homebuyers want best possible value for money and are searching for areas that are up and coming. For their part, developers are investing in outstanding architecture and pushing interior design, “that captures buyers’ imagination”.

New homes are in short supply, particularly finished properties, which is driving buyers towards  off-plan deals up to three years ahead of completion.