The London Assembly has called on Mayor Boris Johnson to research the impact that overseas investment - which doubled between 2009 and 2011 - is having on London's housing market.
The Mayor must build knowledge about overseas investment to ensure that it doesn't reduce the availability of homes for local people to buy or rent, stated the Assembly's motion. The Assembly also called on the Mayor to examine the extent to which properties owned by foreign investors are kept empty or unused.
Caroline Pidgeon AM, who proposed the motion, said:
“There is a real risk that overseas investment is creating an artificial housing bubble, inflating prices beyond the means of most. It’s vital more Londoners aren’t locked out of the capital, their chances of being able purchase their own homes decreasing year on year as prices are pushed sky high. We need to understand the effect overseas investment is having on the housing market, especially in terms of price, affordable housing and supply of homes for Londoners.
“This motion isn’t about penalising investment in London, it simply seeks assurance that the Mayor will take a strong look at the impact to ensure it will not damage neighbourhoods or price more residents out of the capital.”