The capital’s mayor has asked the LSE to start an inquiry into how many new homes are being sold to overseas investors and how many of them stay empty.
The London School of Economics is carrying out the most comprehensive inquiry into London’s property market and the impact foreign investment has had on it. Especially now amidst growing fears about the constantly rising house prices in the capital.
On Thursday, Khan announced the scope of the inquiry. The main points will be how many new homes are sold to overseas buyers, how many are kept empty and how reliant developers are on foreign investment. The LSE is due to report back in spring 2017.
The Guardian reported on the issue earlier this year, uncovering that more than 60% of a 50-storey block of 214 luxury flats by the river Thames in Vauxhall was owned by foreign investors.
Khan said: “London is open to people and investment from around the world. We welcome people from all countries who want to make the capital their home and we welcome international investment that can be crucial in kickstarting the building of new homes.
“At the same time, many Londoners have real concerns about new homes being left empty and the fact that this may be linked to those which are bought off-plan by overseas investors. I’m pleased that the LSE has agreed to lead on this important research, which is set to be the most thorough investigation of its kind in the country and will provide a much clearer understanding of this complex issue.”
Hugh Bullock, a member of the Homes for Londoners board, will oversee the research.