Seven ways to get your child a first home

It has never been harder to get a foot on the housing ladder. House prices are now nearly eight times the average wage, and they have been rising faster than most can save.

Almost one in four first-time buyers are now turning to the ‘Bank of Mum and Dad’, figures from insurer Aldermore Bank show.

And 30-year-olds whose parents have no property wealth are 60 percent less likely to be homeowners, according to the Resolution Foundation.

But if you can’t hand over a hefty deposit to your loved ones, you could still lend a hand.

Last week we explained how you can aid them in preparing their finances to get mortgage-fit in two years. Here, we explore other ways to help them get the keys to their first home…


Family or friends can give all — or a chunk — of a deposit to the buyer as a simple, tax-free, non-returnable gift.

Simply handing over a deposit is the most common way parents help their children onto the ladder, and this is where the term ‘Bank of Mum and Dad’ originates.

Legal & General figures show the Bank of Mum and Dad gave close to £5.7 billion in 2018.

Alongside savings accounts for first-time buyers such as Help to Buy and Lifetime Isas, a gifted deposit can top up any shortfall.

But this may be an option only for wealthy parents who have money they won’t need in retirement if they intend to give all their loved ones an equal deposit.

Vicky Bradley, a product manager at Skipton Building Society, had saved £9,000 for a deposit when she fell in love with a £125,000 two-bed terraced house in Keighley, West Yorkshire.

Her parents, Bob and Linda Bradley, offered to help cover the 10 percent deposit and fees.

‘They agreed to an informal loan of £3,000, but then told me it was really a gift,’ says Vicky. ‘It was such a lovely surprise and allowed me to arrange a mortgage straight away.’

Gifted money could be subject to inheritance tax. For gifts above your annual allowance of £3,000, you must live longer than seven years from the date you gave the money away to avoid the risk of an inheritance tax liability on your donation.

A gifted deposit can also prompt questions over who gets the money back if a couple of splits and their house is sold.

A solicitor can draw up a legal document such as a Declaration of Trust to note which buyer the gift was given , and the share of the property to which they are entitled.


If you cannot afford to give a deposit away, then you can lend it — on your own terms.

A loan lets you keep some control by specifying when you need the cash back. It may be exempt from inheritance tax but the rules are complex, so check with a tax expert first.

A solicitor is needed to draw up the terms and, just like with a mortgage, the parents would register a charge on the property deeds to ensure the loan is paid back.

The charge on the deeds would specify that on the sale of the property, or when it is remortgaged, the money lent is repaid.

A drawback for the parents, however, is that they are also required to stick to the terms and cannot readily access their cash.

Only a handful of lenders accept a parental loan as a deposit, and those that do take monthly repayments into account — which could restrict the amount your child can borrow.


First-time buyers can now add their parents to the mortgage application while keeping Mum and Dad’s names off the deeds.

A ‘joint borrower, sole proprietor’ deal allows the buyer to apply for a home loan using their parents’ income. Adding family members to the mortgage, but not the property, has grown in popularity.

Lenders prefer this over a traditional guarantor deal, where parents are vetted separately to make sure they can make payments in case the children default on the loan.

After Virgin Money withdrew its guarantor mortgage last year due to a lack of demand, only a handful of lenders, including Hinckley & Rugby, Cambridge and Market Harborough building societies, will still consider this type of deal.

Instead, around 20 lenders offer the new joint borrower arrangement — double that available ten years ago.

High Street banks such as Barclays, Metro, and Clydesdale offer a mortgage on these terms, along with building societies such as Newcastle, Hinckley & Rugby and Buckinghamshire. Interest rates are typically the same as with a regular mortgage.

The cheapest five-year fix available is 2.34 percent with Barclays for borrowers with a 10 percent deposit. On a mortgage of £150,000, the monthly repayments would be £661. Over five years, the total cost of the mortgage, including a £999 fee, would be £40,659.

The length of the mortgage offered will depend on the age of the oldest borrower.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: ‘This type of deal helps with the affordability of the mortgage but not the deposit.

It also ensures the child qualifies for first-time buyer stamp duty exemptions, while the parents sidestep the additional 3 percent stamp duty surcharge for purchasing a second home.’

And by not owning a share of the first-time buyer’s home, parents can also avoid paying capital gains tax on any increase in the value of the house when it is sold.

But Mr Harris warns: ‘Anyone named on the mortgage is jointly responsible for making payments. It could also damage their credit rating if repayments are not maintained, and affect the parents’ ability to take out further debt in the future.’



Among specialist offers aimed at families is a 100 percent mortgage tied to a savings account.

This allows first-time buyers to buy a house without a deposit on the condition that a family member deposits money in attached savings account for a fixed period.

The Barclays Family Springboard and Lloyds Lend A Hand mortgages require 10 percent of the value of the house to be locked away in a fixed-interest savings account for three years.

Although your money is tucked away and you cannot access it in an emergency, you will get it back, along with interest, when the term ends.

Lloyds pays 2.5 percent on savings, and Barclays currently pays 2.25 percent — its rate is set 1.5 percent above the Bank of England base rate.

David Hollingworth, of mortgage broker L&C, says: ‘This could help parents or grandparents who are not in a position to give money away, or have a large family and need to share their wealth around.’

But for the first-time buyer, it may mean they have to stay in the property until its value increases enough to give them a substantial deposit in order to take the next step on the housing ladder.

If the house price falls, they could find themselves in negative equity. If mortgage payments are missed, banks may hold on to the money for longer until they are cleared or, depending on the lender, use some of the money to clear any debts.

Former garage owner Carl Bojen, 65, used the Family Springboard mortgage to help his granddaughter Toni Thornton, 28, buy her first home nearby in Grimsby, Lincolnshire, with partner Kane Ramsey and their son Ronny, three.

‘I want to help all my grandchildren buy their own homes, but it would break me to give all six of them a deposit,’ Carl says.

Carl and his wife Linda, 65, put £13,200 of their savings — 10 percent of the £132,000 purchase price — into a Barclays savings account attached to the mortgage. After three years Carl and Linda will get their money back with interest, ready to help their next grandchild.

Without help, Toni, who works in telephone sales, and electrician Kane would have had to save for another three years.


Another option for families is, instead of offering cash as a deposit, parents can allow the bank to put a charge — like a mortgage — on their home for the equivalent amount.

The value of that charge could be, for example, 20 to 25 percent of the value of the first-time buyer’s house. It remains on the property for around 10 years.

It can be reviewed before then, and if there is enough equity built up in the home, it can be removed early.

Aldermore Bank and Family Building Society are two lenders that offer these types of mortgages. Family BS requires the first-time buyer to contribute 5 percent of the deposit.

It could suit parents who have lots of property wealth and do not plan to move house.

If parents want to move, particularly in the short term, there must be enough equity in their new home to still provide the same guarantee.

There is also the risk that they could lose their home if their child or grandchild’s house is repossessed and there is not enough money to repay the loan.


Families can also use a savings account to slash the interest a first-time buyer pays on their mortgage.

A family offset mortgage is similar to the savings and mortgage account option, but instead of getting interested on the money in the account, it is used to reduce the mortgage cost.

When the mortgage lender checks whether the first-time buyer can afford the mortgage, they will base the assessment on the lower monthly payments, after the parents’ savings have been taken into account.

For example, if a mortgage of £150,000 was taken out, and £50,000 savings were deposited in the account, the borrower would only pay interest on £100,000 of the mortgage.

Family Building Society and Yorkshire Building Society are among those which offer the deal.

Parents will get their money back after a fixed period. This is usually ten years, but it can be reviewed earlier — for example, when the borrower’s fixed rate comes to an end.

The drawback is that the money is locked away for a period and will not earn interest for the parents. It could also be eroded by inflation.

If the house is repossessed or sold for less than the loan amount due, savings in the offset account can also be used to foot the shortfall.

But in a low-interest rate environment, savers may prefer to forego earning a small amount of interest in favor of helping their children pay less towards their monthly mortgage payments.

Kim and Alison Wilkinson, both 60, from Surrey, used a Family Building Society offset mortgage to help their daughter Sarah, 26, buy a £260,000 three-bedroom terraced home in Portsmouth, Hampshire.

The couple had built up savings but did not need to use them in the short term. Earning next to no interest in a savings account, they decided to put the money to better use.

Secondary school teacher Sarah’s mortgage with Family BS was fixed for five years at 2.89 percent.

‘Mum and Dad wanted their money to work as hard as possible,’ says Sarah. ‘By putting it in the offset account, it effectively earned 2.89 percent.’

While she could afford the monthly repayments without her parents’ help, she says: ‘This reduced my mortgage payment from around £750 to £550, which gave me the more disposable income to furnish the house and enjoy treats such as holidays, which I may not have been able to do as a first-time buyer.’


Income-poor older homeowners with plenty of property wealth could unlock their home’s equity to help.

Equity release is available to borrowers aged 55 or over. It allows homeowners to gift their property wealth now, instead of waiting until they die and their house is sold.

In the first half of 2018, close to 20 percent of borrowers taking out equity release used the money to help the family, according to Canada Life.4

The only has to be repaid only when the homeowner dies or moves into long-term care. There are also options that allow borrowers to pay the monthly interest if they want to reduce the cost of the overall loan.

This can also reduce your inheritance tax liability, as the value of the equity release loan will be deducted from the overall estate when the inheritance tax bill is calculated.

Rates on equity release mortgages are higher than traditional mortgages. The average interest rate is 5.24 percent, compared to the average two-year fixed rate of 2.49 percent on a traditional mortgage.

Interest is also rolled up and added to the loan monthly, which can double the debt every 14 years.

Parents or grandparents should seek legal advice before entering into a family mortgage arrangement.

Source: DailyMail

Freddie Mac invests $61 million in housing for families displaced by Hurricane Harvey

Freddie Mac, which re-entered the Low-Income Housing Tax Credit market last year for the first time in nearly 10 years, is making another investment in affordable housing.

The government-sponsored enterprise announced Monday that it closed a LIHTC fund with National Equity Fund and made three investments, totaling more than $61 million.

The new fund is Freddie’s fifth LITHC fund since re-entering the market last year.

According to Freddie Mac, the first three investments from this new fund will help provide supportive housing for individuals experiencing homelessness and families displaced by Hurricane Harvey.

Specifically, the investments from the new fund will go towards (details from Freddie Mac):

Aiding those displaced by Hurricane Harvey: A $15 million LIHTC equity investment in Houston’s New Hope Housing’s Dale Carnegie development will provide high-quality housing and supportive services to 170 individuals and families displaced by Hurricane Harvey.

Addressing Homelessness on Skid Row: A $19.6 million LIHTC equity investment in Skid Row Housing Trust’s Flor 401 Lofts development in Los Angeles will serve nearly 100 veterans and special needs individuals experiencing homelessness with both housing and supportive services.

Serving Homeless Veterans in South Los Angeles: A $26.5 million LIHTC equity investment in Hollywood Community Housing’s Florence Mills Apartments will help provide supportive housing in South Los Angeles — an area with a very high homeless rate. Thirteen of the 74 units will be designated for homeless veterans.

According to Freddie Mac, it chose to partner with NEF on the new fund because of the nonprofit’s “deep expertise with the LIHTC program, its commitment to serving communities in need, and its ability to support Freddie Mac’s mission of delivering liquidity and stability to underserved markets.”

David Leopold, vice president of Targeted Affordable Sales & Investments at Freddie Mac, said that NEF has a more than 30-year record of making investments in affordable housing, adding that the GSE is “proud” to aid NEF in its mission.

“We believe that extraordinary things can happen with great partners, and NEF’s partnership with Freddie Mac demonstrates that motto to be true,” said Reena Bramblett, NEF’s senior vice president of equity placement. “Freddie Mac’s investments provide life-changing opportunities for the individuals and families that call these LIHTC properties home.”

Source: Housing Wire

FG to complete Ekiti housing estate April

The National Housing Project of the Federal Government in Ado Ekiti, the Ekiti State capital, is to be delivered in April.

South West Zonal Director of the National Housing Project, Mr Olasunkanmi Dunmoye, disclosed this in Ado Ekiti during an inspection tour of the project at Agric Olope area of the state capital.

He said, “The project was designed by the Federal Government in 2016 as part of ways to ameliorate the sufferings of poor Nigerians in the area of affordable shelter.”

Dunmoye said the housing project consisted 70 flats for the first phase, harbouring descriptions such as one-bedroom flats, two-bedroom flats, three-bedroom flats as well as semi-detached bungalows.

According to him, more than half of the houses have been completed, while the remaining are in various stages of completion

He said the road network project within the environment, including electrification and water provision had equally reached between 40-70 per cent completion stage.

The zonal head said that the housing project in Ekiti State could not be completed early as obtainable in some states, because the land originally allocated for that purpose by the state government under the administration of former governor, Ayo Fayose, was considered too far from the city centre.

“It was after then that we reached an agreement with the former government which gave us an alternative land at the centre of the state capital where we are at present, but with a condition that we must rehabilitate the Agric-Olope access road which we have now done”, he said.

Dunmoye said a total of 15 contractors were engaged on site to prosecute the housing project, but said no fewer than 1,750 persons were employed either directly or indirectly on site.

On complaints by some of the contractors that they had not been fully mobilised for jobs already done, the Zonal Director said a list of contractors affected would soon be compiled and sent to Abuja for clearance.

He, however, frowned at the attitude of some of the selected contractors for the housing project who had refused to make appearances for the jobs awarded to them, threatening that government would substitute them soon  if they failed to turn a new leaf.

The state Controller of Housing, in the Federal Ministry of Power, Works and Housing, Mr Otegbade Oladiran and a director with the ministry, Mrs Janet Ogunleye, who conducted the Zonal Director round the project site, assured that all the components would be executed to specification.

Source: PUNCH.


Liberia President Launches Low Income Housing in Rural Areas

Liberia President, has launched a housing program for rural dwellers known as the Sasstown development project targeted toward a better living environment.


The former World best footballer took to his official social media page to make the announcement on Sunday, March 3.

President Weah revealed he was excited with the project expected to improve living condition of Liberians, who will be encouraged to go into agriculture after the residential buildings are ready.


“I’m excited to announce that my vision to transform the standard of living of our rural dwellers, precisely by upgrading their homes from mud brick homes to concrete homes; has started with the Sasstown development project,” President Weah’s statement read in part.

A further breakdown of the Sasstown development project revealed that existing residential cities will be converted to agricultural zones once the new buildings are completed.

In an effort to avoid demolition of their existing homes; which will prevent them from being homeless during the construction period.

“We have devised a strategy wherein we will build the new homes at a different location; and once the construction is done, they can then move into the newly constructed homes while we demolish the old ones and encourage them to do agriculture at the site of their old homes,” he said.

The President assured Liberians that his government would use every available cent on developing the country..


Stabilised Earth Bricks should be used for building construction to ensure durability- Professor

A Professor of Architecture,  Adedeji Daramola, has suggested the use of locally-made Stabilised Earth Bricks (SED) by  the  building construction  to ensure durability of structures in the society.
Daramola, also the Rector of  Redeemers’ College of Technology and Management (RECTEM) in Mowe, Ogun, described the stabilised earth bricks as a mixture of laterite or natural soil with some  little quantity of  cement to  make them stronger than the usual blocks.
“Building is  a capital intensive project; but the fact is that we can still achieve durable buildings by using local materials.
“We have a lot of local bricks,  now called stabilised earth bricks, which look stronger after production,” he said.
Daramola said that buildings built with  stabilised earth bricks had immense advantages for their  inhabitants.
He said that they were capable of absorbing  the atmospheric moisture, and creating  a healthy environment for their  occupants.
According to him, such bricks serve as bullet proofs for the buildings they were used to construct.
He said that when  earth bricks were used, different forms of reinforcements such as cement  blocks, concrete flooring, iron rods and others would no longer be required.
“The mode of production of solid earth  bricks is simple; one does not have to wait till the bricks are dried before using them for construction.
“You can put up your buildings without any form of reinforcement when builders use  the stabilised earth bricks; these bricks are bullet proof,” Daramola said.
The don, who had been promoting  the newly discovered building materials in various  publications said that using the bricks was cost effective unlike the common method of building.
“This involves less carbon emission and embodied energy in the production phase; also, no direct environmental pollution during the whole life cycle.
“These bricks can be used for any form of building; it is tested and trusted,” the professor said.

45,000 new homes could be built on empty sites in UK town and city centres-Report

There is around eight million square meters of vacant space in town and city centres across the UK, a third of which could be used to deliver 45,000 new homes, according to a new report.

The report, Making Sense of Mixed Use Town Centres from planning and development consultancy Turley says that a proactive mixed-use development strategy could help to address the current housing crisis but at the same time it should not be assumed that retail in High Streets is dead.

The creation of 45,000 new homes is based on the assumption that new residential developments do not exceed the height of existing buildings and the report points out that many more homes could be delivered if taller buildings are considered.

Click here to watch weekly episodes of Housing Development Programme on AIT

‘Securing the future of our town centres is a critical national issue and one that is rightly getting a lot of attention. These centres are vital to residents, communities and businesses alike and are engines of economic growth. It is vital that these areas are allowed to evolve and that the planning system is match fit to support this,’ said Richard Laming, senior director, head of economics, at Turley.

‘Our report is an attempt to put forward a positive vision for the future amidst the negativity that currently dominates the conversation. This starts with debunking the myth that the high street is dead,’ he added.

Planning team director Paul Keywood said that there needs to be balance in terms of planning. ‘We believe that for these centres to continue to succeed and serve the needs of their communities they need to embrace a mixed-use future where the balance of uses shifts from what we have traditionally seen,’ he explained.

‘A whole place but bespoke approach to each centre, that considers what is needed to make these places attractive and useful for communities and businesses, is essential,’ he added.

‘We should stop seeing High Streets solely as places to shop, and start to recognise them as potential residential centres as well. There are plenty of people who would love to live right in the heart of the action, and having more people move into our town centres would turn them into more vibrant and dynamic areas,’ he explained.

‘We’ve all had the experience of walking through high streets in the evening, only to find them deserted, resembling ghost towns, with no real activity until the start of the next working day. They can feel unsafe and unloved, and are hardly enjoyable places to visit,’ he pointed out.

‘By contrast, more people living in the middle of towns would mean that they would continue to be lively even after the shops were closed, helping footfall in local pubs, theatres and restaurants. Having more people around would make them safer, turn them into desirable destinations after dark, and at last breathe life back into our town centres,’ he added.

300 projects executed in Bayelsa within 7 years – Commissioner

The Bayelsa State government has said that Governor Seriake Dickson-led administration has executed over 300 projects including roads, bridges and buildings within his seven years in office.

The state Commissioner for Works and Infrastructure, Mr Konyefa Godwin, told newsmen in Yenagoa that the projects are sited and scattered across the eight local government areas (LGAs) of the state.

He said some of the projects are completed and on-going in coastal communities and upland.

The commissioner listed some of the completed projects to include the state International Airport, Ecumenical Centre, building of annexes 3, 4, 5 and 6 at the state secretariat complex, the new Governor and Deputy Governor’s offices, dualisation of Sani Abacha Express and Azikoro road among others.

Other completed projects are Diagnostic Centre, House Officers Quarters FMC, Etegwe-Amasoma road, Governor’s Aide block, Ogbia-Nembe road and Igbogene carriageway.

Edwin noted that some of the on-going projects include the Niger-Delta University Senate building, Sagbama-Ekeremor road, University of Africa Administrative block, Yenagoa-Oproma road which links Southern Ijaw local government by road among others.

FG completes 536 housing units in north central under NHP

The Federal Government says the 536 housing units being constructed in the North Central zone under the National Housing Programme (NHP) are ready for inauguration and allocation.

The NHP North Central, Zonal Director, Mr Valentine Nwaimo, disclosed this in an interview with newsmen in Abuja.

Nwaimo said that the 536 houses being constructed in the six states of the zone and FCT have attained practical completion level, while most houses needed finishing touches including infrastructural projects.

“We are quite sure that by April all the 536 housing units including infrastructure will be completed and inaugurated for occupation,’’ the Zonal Director said.

He said that the NHP in FCT comprised of 72 units, Kogi – 76, Kwara – 76, Niger – 80, Nasarawa – 76, Benue – 76, while Plateau comprised of 80 housing units.

The NHP in Kogi is completed and awaiting inauguration and occupation, Plateau, Niger, Nasarawa and FCT are between 70 to 80 per cent completion, while others are nearing completion.

Nwaimo, however, expressed satisfaction over the quality of work done in the zone, adding that the ministry deployed competent professionals, who were residents in the various states, charged with monitoring the day-to-day activities in the various sites.

“The specification and designs were being made possible by day-to-day supervision from these professionals, so that the contractors would not compromise.

“The NHP targeted, at the low income group is envisioned by the Federal Government and being anchored by the Ministry of Power, Works and Housing to bridge housing deficit and create jobs nationwide,” he said.

A total of 3,000 housing units are being constructed in 34 states including FCT except Lagos and Rivers where favourable sites are yet to be secured.

Source: Independence Nigeria

Niger gov’t partners with firm, begin construction of 200 units of housing estate

The Niger State government and Happy Home Builders Nigeria Limited, under a Public Private Partnership, PPP, arrangement have commenced construction of 200 units of one bedroom bungalows and two-bedroom duplexes at the Abubakar Sani Bello Housing Estate along Suleja-Madalla Abuja Road, in Rafinsayin.

The governor, Abubakar Sani Bello, who was represented by the commissioner for Lands and Housing, Alhaji Isa Musa Kanko, at the groundbreaking ceremony stated that the essence was to promote synergy between the public and private sector in meeting the housing  demands of Nigerians, particularly those in Niger State.

Click here to watch weekly episodes of our Housing Development Programme on AIT

He said the project which will be completed by the end of 2019 will go a long way for the people in the state to have decent and affordable homes that would give them the needed the comfort.

The Abubakar Sani Bello Housing Estate which is an initiative of the Suleja Local Government Council and fully supported by the Niger State Government sits on 33.4 hectares of land and having 371 number of plots with an average size of 450 square meters (Sqm) located opposite Community Secondary School, by Old Barracks, Suleja-Madalla Road in Niger State.

He said: “The issue of housing cannot be over emphasized due to the importance of it to humanity and we as a government wants to let the people know that we are committed to ensure decent houses are provided and accommodated by our people and Nigerians from far and near. “We want to assure the developer that every support needed to complete the project we will give it to succeed.”

Also speaking,  the permanent secretary in the Ministry of Lands and Housing, Niger State, Dr Abdul Hussain, said that the state will assist the developer to issue individual Certificate of Occupancy to subscribers of the estate.   Meanwhile, the   managing director, Happy Home Builders Limited, Tpl Lukman Komolafe, earlier in his  remarks commended the governor’s response and action in promoting PPP to meet the housing needs in the state especially in the area of land acquisition and documentation.

Komolafe also acknowledged recent promo by the state government through the Ministry of Lands and Housing, for issuing Certificate of Occupancy to applicants for as low as N5, 000 and N15, 000 in rural and urban area respectively in less than one month.   He said, “We also commend the governor  as necessary documentations like C of O, approved layout, approved building plan through the Ministry of Land and Housing has been provided for this estate.”

Source: Leadership

Governor and market reacts as Amazon cancels Newyork Headquarters

On the heels of Amazon’s surprise announcement yesterday to cancel moving forward with its plan to build a new headquarters facility in New York’s Long Island City due to some Democratic political opposition, both the local real estate market and the Governor’s office were stunned.

In a prepared statement, New York’s Governor Andrew Cuomo released the following comments this week:”Amazon chose to come to New York because we are the capital of the world and the best place to do business. We competed in and won the most hotly contested national economic development competition in the United States, resulting in at least 25,000-40,000 good paying jobs for our state and nearly $30 billion dollars in new revenue to fund transit improvements, new housing, schools and countless other quality of life improvements. Bringing Amazon to New York diversified our economy away from real estate and Wall Street, further cementing our status as an emerging center for tech and was an extraordinary economic win not just for Queens and New York City, but for the entire region, from Long Island to Albany’s nanotech center.

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“However, a small group politicians put their own narrow political interests above their community — which poll after poll showed overwhelmingly supported bringing Amazon to Long Island City — the state’s economic future and the best interests of the people of this state. The New York State Senate has done tremendous damage. They should be held accountable for this lost economic opportunity.

“The fundamentals of New York’s business climate and community that attracted amazon to be here – our talent pool, world-class education system, commitment to diversity and progressivism – remain and we won’t be deterred as we continue to attract world class business to communities across New York State.

After over a year and a half of politically courting Amazon’s HQ2 to New York, in a deal that promised over 25,000 new high wage jobs for New York, along with creating another 82,000 indirect jobs with an economic impact topping over $5 billion dollars, the State’s Governor was understandably disappointed at yesterday’s news.

The Real Estate Board of New York’s president John H. Banks also released a prepared statement.


“New York’s renaissance over the past forty years has been due in part to our ability to work through difficult issues that have led to record population and job growth and the emergence of our city as a true global capital. It’s unfortunate that we have lost out on an opportunity to create tens of thousands of jobs for city residents and generate billions of dollars in tax revenue to fund vital services including infrastructure improvements for transportation, schools, and open space. Nevertheless, New York City is still open for business and will retain its status as a world class center for tech and innovation,” says Banks.

A number of local real estate brokers, developers and property speculators also had their dreams dashed this week with Amazon’s decision not to come to New York.

Hundreds of local properties have either gone under contract or have already traded hands since announcing Amazons move to Long Island City last November 13, 2018. Some local experts estimate the blow to the local real estate market will be into the hundreds of millions of dollars of lost property values in the next 12 months.

Regardless of New York, Amazon’s other two other HQ2 locations in Virginia and Tennessee are still slated to move forward as planned.

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