London mayor has ‘real concerns’ about rising overseas investment
London mayor has ‘real concerns’ about rising overseas investment
Sadiq Khan to launch ‘the most thorough research’ into foreign ownership in the British capital ‘ever undertaken’
Concerned by the possibility that foreign buyers are pricing locals out of housing, London mayor Sadiq Khan is commissioning an inquiry into overseas investment in the city.
Khan will order “the most thorough research on this matter ever undertaken in Britain,” he said in an exclusive interview with The Guardian. “It’s clear we need to better understand the different roles that overseas money plays in London’s housing market, the scale of what’s going on, and what action we can take to support development and help Londoners find a home.
“As more and more Londoners struggle to get on the property ladder, there are real concerns about the prospect of a surge in the number of homes being bought by overseas investors,” he added, with the caveat that he still “welcomes” property investors from around the world.
The undertaking will take a look into the impact of foreign capital on multiple housing categories, from prime properties to low-cost homes, in various areas of the metropolis. It will also profile “exactly who owns what” in London properties, ensuring that “dirty money” will not inundate the market, said Khan.
More: What Brexit? Hong Kong investors still favour London
More than 666,000 homes across the UK are reportedly worth GBP1 million or more, two-thirds of which are located in London, according to property portal Zoopla. High home values in the city helped drive nearly 66,000 people in their 30s to move to other parts of Britain, according to research by Generation Rent released earlier this week.
Some analysts believe the housing crisis can be attributed to a slew of factors apart from foreign investment, such as rising land values in coveted sections of London. “Like any major world city, the issue in London centres around the fact that there is not enough of the most popular bits of the city to go around,” Yolande Barnes, director of Savills’ world research department, told The Guardian. Without foreign investors in London property, the city “would not have been able to fund very much social or affordable housing since the financial crash.”
Read next: Chinese firm building Europe’s tallest tower in London
Source: Property Report