Agenda item

8.7  Hugh Bullock introduced the report of the Overseas Investment sub-group and thanked officers for their support in producing the report.

8.8  Members noted that while it was interesting that the proportion of property sales to overseas investors was lower than commonly perceived, it was concerning to see that over half of these properties cost under £500,000, and were therefore in the ‘mainstream’ London market that many Londoners could have a greater chance of affording. It was noted that in order to build public confidence in overseas investment and its value to the housing market, common misconceptions should be addressed.

8.9  The issue of vacant properties was discussed. It was noted that whilst the percentage of vacant homes was lower than often suggested and centred largely around a few key ‘prime’ areas in London, attention needed to focus on the issue as public perceptions were important.

8.10  The Board discussed how overseas investment remained critical for driving housing supply in London, particularly in relation to the pre-sales that builders required in order to secure project finance. The barriers that prevent many Londoners from buying off-plan were discussed and Members considered ways in which these properties could be made available to more Londoners, such as through a possible mortgage guarantee scheme, noting that further work would need to be undertaken to identify workable solutions.

8.11  It was noted that the research had proffered a finer understanding of issues and challenges around overseas investment in London properties, which would enable any response or intervention to be better targeted.

8.12  The Mayor thanked Hugh Bullock for the report, noting that he would respond formally in due course and that a copy of the response would be circulated to the Board for information.

8.13  DECISIONS:

(a)  That the report and recommendations made by the Homes for Londoners Overseas Investment Sub-Group be noted; and

(b)  That the Mayor’s formal response to the report be circulated to the Board once available.