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Sadiq Khan launches inquiry into foreign home ownership in London

Helen Cahill
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BRITAIN-POLITICS-LABOUR
Khan has pledged to build more affordable homes for Londoners (Source: Getty)

London mayor Sadiq Khan is launching an inquiry into the impact of foreign investment on the London housing market.

Khan has said foreign investment is causing real concerns for London property and that he plans to look into the issue for the first time.

“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,” Khan said.

“That’s why we are commissioning the most thorough research on this matter ever undertaken in Britain – the biggest look of its kind at this issue – so we can figure out exactly what can be done.”

Read more: This is why government spending isn't fixing the housing crisis

House prices on London's high-end properties have been falling this year due to over supply and the introduction of a higher rate of stamp duty on second homes.

Large housebuilders such as Berkeley Group have argued that the way to solve London's housing crisis is to provide support for small and medium developers in the capital, so that more affordable homes can be built.

There have been several interventions from the government to effectively boost demand, such as the Lifetime ISA and Help to Buy. According to analysis by Shelter, around two thirds of government spending on housing is actually increasing demand - just 35 per cent is dedicated to boosting supply.

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