The London Assembly today agreed a motion asking the Mayor to commission research into the effects of overseas investment on the London housing market.
With London property continuing to attract foreign buyers, Members determined that the Mayor now has a duty to analyse what impact this investment has on the price, affordability and supply of homes across the capital.
Caroline Pidgeon MBE AM, who proposed the motion said:
“To ensure we have the right policies in place to tackle London’s housing challenges we must first have a full understanding of the real impact that overseas investment is having on the price, affordability and supply of homes for Londoners.
At present we only have a partial picture of why overseas investment has increased in so many parts of London. It is not even clear how many of these are even being used. Londoners deserve to know exactly what is happening to London’s housing market and that is why a full investigation is so desperately needed.”
Fiona Twycross AM, who seconded the motion said:
“The need for more housing in the capital for Londoners is greater than ever and it is simply unacceptable to have much needed homes sitting empty and unused. Londoners deserve to know the full extent to which foreign investment in London’s housing has led to houses not being used for homes and house prices sky rocketing. Instigating this research is vital in showing the true effects of overseas investment on the London housing market.”
The full text of the Motion is:
This Assembly notes that London’s property market continues to act as a magnet for overseas investment, which is believed to be contributing to the capital’s housing crisis in terms of both affordability and availability. This is exemplified by a recent Guardian investigation, which revealed that almost two-thirds of homes in the Tower, a 50-storey residential development in Vauxhall, are in foreign ownership, many of which are believed to be empty and unoccupied. One quarter of these are also held through opaque offshore companies, raising serious questions about where the money for the purchase of these properties has come from. [1]
This Assembly notes the Mayor of London’s recent statement that “too many [homes] are sold off-plan to overseas investors, only to sit empty”[2], with a growing number of investors using homes in the capital simply as “gold bricks for investment”[3].
This Assembly shares the concerns expressed by the Mayor of London, but recognises that the true extent, nature, and impact of foreign investment in London’s housing market is not yet fully understood.
This Assembly believes the Mayor has a duty to fully investigate and report upon overseas investment in London’s housing market as he seeks to update the capital’s housing policies, to ensure that homes remain affordable for local people to buy and rent.
This Assembly therefore calls on the Mayor to examine the extent to which properties owned by overseas investors are kept empty or unused; and to commission research into the effects of overseas investment on the price, affordability and supply of homes across London as a matter of urgency.
Notes to editors
- The Guardian, 24 May 2016, ‘The London skyscraper that is a stark symbol of the housing crisis’.
- Sadiq Khan, ‘A Manifesto for all Londoners’, page 9.
- Mayor of London speaking at Mayor’s Question Time on 25 May 2016, here.
- Watch the full webcast.
- The motion was agreed by 16 votes for and 6 against.
- Caroline Pidgeon MBE AM, who proposed the motion, is available for interviews. Please see contact details below.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
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